"Dabur India Announces ₹135 Crore Investment for New Facility in South India"

In a significant move, Dabur India's board announced on Wednesday its approval for a ₹135 crore investment in establishing a manufacturing facility in South India. This marks the first-ever investment by the fast-moving consumer goods (FMCG) major in the southern region. The greenfield factory is set to produce a diverse range of products, including popular items such as Dabur Honey, Red Paste, and Odonil air fresheners.

The FMCG giant reported a consolidated net profit of ₹514.2 crore for the third quarter ending December 31, 2023, reflecting an 8 per cent increase from the previous year's ₹475.9 crore. The revenue from operations saw a notable 7 per cent surge, reaching ₹3,255 crore in Q3, with significant contributions from the home and personal care, as well as the food and beverage segments. The company highlighted a 6 per cent volume growth in its India business.

Mohit Malhotra, CEO of Dabur India, commented on the strategic move, stating, "Our business has experienced substantial growth in South India, constituting around 18-20 per cent of Dabur’s domestic operations. With the increasing contribution from South India, we have made the decision to establish a new manufacturing facility to better cater to local demand." Currently, Dabur India operates from a network of 13 domestic manufacturing locations.

Malhotra attributed the demand rebound in the third quarter to moderating inflation, positive consumer sentiment, and the company's focus on expanding its rural distribution footprint. He emphasized the positive impact of these factors on the hinterland demand for Dabur's products.

HBL