Dabur India Ltd to Invest ₹135 Crore in New Tamil Nadu Manufacturing Facility
Team Finance Saathi
22/Aug/2024

Key Points:
New Manufacturing Facility: Dabur India Ltd is setting up its first manufacturing unit in South India with an initial investment of ₹135 crore, expanding to ₹400 crore in five years.
Capacity Expansion: The new facility will support brands such as Red Toothpaste, Odonil, and Honey, helping meet the rising demand in South India.
Previous Investments: Last year, Dabur invested ₹550 crore in its largest manufacturing unit in Madhya Pradesh.
Financial Performance: Dabur reported an 8% growth in net profit to ₹500 crore for the June quarter, with a 7% increase in revenue to ₹3,349 crore.
Market Presence: The new plant will help Dabur strengthen its market position in South India and improve sourcing from local Tamil Nadu farmers.
Dabur India Ltd has announced a significant expansion into South India with the establishment of a new manufacturing facility in Tamil Nadu. The company is initially investing ₹135 crore in this project, with plans to scale this up to ₹400 crore over the next five years. This will be Dabur’s first manufacturing unit in South India, aimed at expanding production capacity for key brands such as Red Toothpaste, Odonil, and Honey.
The move comes as part of Dabur’s strategy to enhance its reach in response to growing demand for branded consumer goods. Rahul Awasthi, global head of operations at Dabur, emphasized that this new facility would enable the company to be closer to its consumers and improve its sourcing of agricultural produce from local Tamil Nadu farmers.
Last year, Dabur commenced construction on its largest manufacturing unit in India, located in Madhya Pradesh, with an estimated investment of ₹550 crore. This facility will produce a range of products including food items, Ayurvedic medicines, and health supplements.
Dabur operates 14 manufacturing plants across India and has a strong presence in northern markets. The company reported an 8% increase in consolidated net profit to ₹500 crore for the June quarter, with revenue rising by 7% to ₹3,349 crore. For FY24, Dabur’s revenue stood at ₹12,404 crore, with a net profit of ₹1,843 crore.
Shares of Dabur India were trading at ₹645.00 on the National Stock Exchange on Thursday, marking a 1.7% increase from the previous close. The investment in Tamil Nadu aligns with Dabur’s goal to enhance its market presence in southern India and capitalize on local opportunities.
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