In a strategic move to accommodate the burgeoning demand in South India, Dabur, a prominent FMCG and ayurvedic products manufacturer, is set to establish a new manufacturing unit in the region within the next year, according to the company's CEO, Mohit Malhotra.
With the company's business in South India doubling over the last 5-6 years, constituting 20% of its domestic sales, Dabur aims to bridge market gaps and cater to specific regional needs by customizing its product portfolio. In an interview with PTI, Malhotra stated that the company is actively identifying opportunities to launch tailored products suited to the Southern markets.
Dabur, currently operating 13 manufacturing units across the country, is augmenting its production capacity to meet the escalating demand. Malhotra revealed that the company is diversifying its manufacturing activities by introducing new lines and consolidating operations, shutting down units where tax benefits are diminishing and opening new units aligned with the GST regime.
Malhotra highlighted the substantial progress in Dabur's business in South India, noting that it now contributes 19-20% of the company's domestic business, compared to less than 10% seven to eight years ago. Regarding the new plant in South India, he stated, "Maybe it is a year away. Within a year, we might plan something for South of India as business scales up."
Dabur's focus on the Southern market involves creating region-specific products using a framework called RISE, emphasizing regional insights, speed, and execution. Notable brands such as Dabur Red, Dabur Honey, and Odonil play a significant role in the Southern region, contributing to the company's overall success.
While discussing international markets, Malhotra identified MENA (Middle East & North Africa) as a growth frontier, with plans to explore manufacturing units in Saudi Arabia if the market expands. Dabur already has manufacturing facilities in the UAE, Egypt, Turkiye, and South Africa, serving various regions through trade agreements.
Despite a post-COVID recovery in international markets, Malhotra acknowledged geopolitical challenges, including tensions in the Middle East and the Russia-Ukraine War. However, he expressed confidence in the overall performance of Dabur's business on the global stage.
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