Industry News

Dabur Plans to Set up New Manufacturing Unit in South India

Dabur Plans to Set up New Manufacturing Unit in South India

India: In 2023, Dabur intends to establish a new factory in South India in less than a year's time, as its business grows in the region. Dabur has been searching for gaps in terms of applications to provide products that can be customized to the markets. This enables the firm to create customized goods that are in line with the particular needs of the Southern market. This customer-focused strategy demonstrates Dabur's dedication to innovation and adaptation. With an emphasis on regional insights, speed, and execution, Dabur uses a framework called RISE to create goods that are unique to the Southern market. Well-known brands including Odonil, Dabur Red, and Dabur Honey are essential to the company's overall success in the Southern region. Currently, 20% of Dabur's domestic sales originate in South India, where its company has doubled over the previous five to six years.

The new plant in South India might be operational in as little as a year, instead of several years. As the firm expands, the company has something planned for South India in that time range. Notably, Dabur has made a large investment to establish a new facility in Indore. The company operates 13 manufacturing facilities around the nation, is expanding its capacity even further to fulfil demand and diversify its manufacturing operations by introducing new lines. Moreover, the business intends to increase the scope of its manufacturing operations in foreign markets that serve the Middle East and Europe.

Additionally, the business is restructuring its production activities by constructing new units in regions undergoing the GST regime change and closing down facilities where tax incentives are about to expire. These strategic efforts demonstrate Dabur's commitment to addressing customer requests, staying ahead of industry trends, and maintaining its position as a leader in the FMCG and ayurvedic products segment as the firm grows and changes. It is in line with the company's objective to strengthen its position in South India by reducing the difference between its 20% market share at now and the 30% industry benchmark set by other FMCG competitors in the area.

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