Dabur to Setup New Manufacturing Plant in Tezpur

Dabur India Ltd. commissioned a new manufacturing facility in Tezpur, Assam for manufacturing its entire product range.

India: The facility is spread over 30 acres and will be built at an estimated cost of USD37.18 million. The plant, located in the Balipara industrial area, will manufacture the entire range of Dabur’s ayurvedic medicines, health supplements, hair oils, shampoos, toothpastes, skincare, and homecare products.

The FMCG giant, which has 29 other factories across India and a few in other countries, claims that the Tezpur manufacturing facility is the largest, worldwide. The company has boosted its expansion plans to respond to the stiff competition from Patanjali Ayurved Ltd. for the past couple of years. Moreover, demonetization had a serious impact on the sales of the company in the last quarter, due to which the company had to rethink its business strategy to stay in the marketplace with a competitive edge.

TechSci Research depicts that the Tezpur plant reflects the confidence of Dabur in continuous growth and expansion of their FMCG business in the country and has prioritized the location as a strategic manufacturing hub. The company is one of the oldest and most trusted brands in the country, thus, to justify its position and size of business, the company has sanctioned the Tezpur manufacturing facility. This is expected to boost the market of ayurvedic products across the country in coming years.

According to a report published by TechSci Research, “India Ayurvedic Products Market By Product Segment, By Organized vs. Unorganized, Competition Forecast & Opportunities, 2011 – 2021”, the country’s Ayurvedic products market is projected to register a CAGR of 16% during 2016 - 2021. Growth in the market is anticipated on account of rising consumer awareness about natural treatment options, increasing online availability of Ayurvedic products and growing number of companies introducing Ayurvedic nutraceuticals and dietary supplements. India Ayurvedic products market is dominated by Ayurvedic personal care products segment, which had a revenue share of more than 60% in 2015. Demand for Ayurvedic products is predominantly concentrated in the country’s south and north regions, wherein north region is emerging as the fastest growing regional market for Ayurvedic products. In 2015, both of these regions cumulatively accounted for nearly two-third of the revenue share in India Ayurvedic products market. 

According to another report published by TechSci Research, “India Oral Care Products Market By Product Type, Competition Forecast and Opportunities, 2011 – 2021”, the oral care products market in India is projected to grow at a CAGR of over 6% during 2016 – 2021. On the basis of product type, the market has been segmented into five categories, which include toothpaste, toothbrush, mouthwash, tooth powder and other oral care products. Among these categories, toothpaste segment dominated the country’s oral care products market in 2015, and the segment is anticipated to maintain its dominance over the next five years as well. Few of the leading players operating in the India oral care products market include Colgate-Palmolive (India) Ltd., Hindustan Unilever Limited, Dabur India Limited and Patanjali Ayurved.