Dabur India Plans to Establish New Manufacturing Unit in Southern India as Part of Expansion Strategy

Dabur, a prominent player in the fast-moving consumer goods (FMCG) and ayurvedic products sector, is strategically positioning itself for further growth with plans to establish a new manufacturing facility in South India within the next year. CEO Mohit Malhotra shared insights into the company's expansion strategy, emphasizing the significance of the South Indian market, which currently contributes 20% to Dabur's domestic sales and has witnessed a remarkable doubling of business in the last 5-6 years.

To ensure continued success in the region, Dabur is proactively identifying market gaps and consumer preferences, allowing the company to introduce customized products that align with the unique demands of the Southern market. This customer-centric approach is a testament to Dabur's commitment to adaptability and innovation.

Despite already operating 13 manufacturing units across India, Dabur recognizes the need to augment its production capacity to meet the escalating demand. The company's focus extends beyond mere capacity expansion; it also involves diversifying manufacturing activities by introducing new production lines. This strategic move underscores Dabur's commitment to staying ahead in a rapidly evolving consumer goods landscape.

Dabur India, renowned for its commitment to quality and innovation, is allocating an annual capital expenditure (capex) ranging between Rs 350-450 crore. This financial commitment reflects Dabur's dedication to sustaining growth and remaining competitive in the dynamic FMCG sector.

Looking beyond domestic borders, Dabur is also eyeing global expansion by enhancing its manufacturing activities in international markets. Regions such as the Middle East and Europe are in the company's sights, aligning with its vision of becoming a global leader in the FMCG and ayurvedic products segment.

Furthermore, Dabur is strategically consolidating its manufacturing operations, a move that involves closing units where tax benefits are expiring. Simultaneously, the company is opening new units under the Goods and Services Tax (GST) regime, showcasing an astute understanding of regulatory dynamics and a commitment to operational efficiency.

As Dabur continues to evolve and expand its footprint, these strategic initiatives highlight the company's dedication to meeting consumer demands, staying ahead of market trends, and solidifying its position as a leader in the FMCG and ayurvedic products segment.