Dabur to invest Rs. 500 cr to expand mfg capacity.

Home-grown FMCG major Dabur will invest Rs. 500 crore this year to expand its manufacturing capacity. This would include an investment of Rs. 250 crore to set up a new plant in Assam for manufacturing personal and healthcare products.

The new plant will become operational by 2017, the company told TOI. A part of the investment will also be used to ramp up capabilities in its plants abroad. Dabur operates 20 manufacturing units, 12 in India and the rest abroad in countries such as Egypt, Nepal and US.

Analysts had predicted a rough road ahead for Dabur due to imminent threat from Patanjali, which reported revenues of Rs. 5,000 crore for the year 2015-16. However, Dabur recently announced a 16.6% rise in net profit for the quarter ended March 31, backed by volume growth in hair oils, homecare and oral care. Its net profit for the full year rose by 17.5%.

'We had to deal with a tough economic environment characterized by extreme volatility in currency, as well as geopolitical disturbances in key geographies. We have taken steps to efficiently manage the emerging risks and challenges,' said Sunil Duggal, CEO, Dabur India. 'The company will also leverage its strong herbal heritage and product portfolio to take advantage of the growing consumer preference for natural and Ayurvedic products.'

The Delhi-based company reported a consolidated net profit of Rs. 331.9 crore for the fourth quarter, up from Rs. 284.9 crore in the year-ago period. Net sales for the quarter increased 10.9% to Rs. 2,157.3 crore, up from Rs. 1994.8 crore in the same period a year ago.

For the full year ended March 31, Dabur's net sales grew by 8.1% to Rs. 8,436 crore, up from Rs. 7,806.4 crore a year earlier. Net profit for the year stood at Rs. 1,252.7 crore, up 17.5% from Rs. 1,065.8 crore a year earlier.

TOI