Dabur, a prominent FMCG and ayurvedic products manufacturer, is gearing up to establish a new manufacturing facility in South India within a year, as part of its expanding business operations in the region. According to Mohit Malhotra, CEO of Dabur, the company is witnessing significant growth in South India, which now contributes 20 percent of its domestic sales, marking a doubling of its business in the region over the last 5-6 years. In an interview with PTI, Malhotra highlighted the company’s strategy to launch customized products tailored to the unique demands of South Indian markets.
Manufacturing Capacity Enhancement
With 13 manufacturing units already operational across the country, Dabur is ramping up its production capacity to meet growing demand. The company is diversifying its manufacturing activities by introducing new production lines and identifying opportunities for portfolio expansion. Dabur allocates an annual capital expenditure of approximately Rs 350-450 crore to fuel its expansion initiatives.
International Market Expansion
Expanding beyond domestic borders, Dabur aims to bolster its manufacturing activities in international markets, particularly in regions such as the Middle East and Europe. The company is consolidating its global manufacturing operations, strategically shutting down units in regions transitioning from tax to GST regimes while opening new facilities in emerging markets.
Focus on South India
Malhotra emphasized the strategic importance of South India for Dabur’s growth trajectory, highlighting plans to establish a new manufacturing plant in the region within a year. The company aims to leverage its RISE framework (Regional Insights, Speed, and Execution) to develop and introduce products tailored specifically for South Indian consumers.
International Market Presence
Dabur’s international footprint extends to regions like MENA (Middle East & North Africa), where it operates a manufacturing facility in the UAE, utilizing trade agreements to cater to markets like Saudi Arabia. Expansion plans include exploring opportunities in Saudi Arabia for potential manufacturing units. Additionally, Dabur operates manufacturing facilities in Egypt, Turkiye, and South Africa, serving diverse markets across Africa, Europe, and North America.
Conclusion: Navigating Geopolitical Challenges
Despite geopolitical uncertainties, including tensions in the Middle East and the Russia-Ukraine conflict, Dabur remains optimistic about its international business prospects. The company’s strategic investments in manufacturing infrastructure and portfolio expansion underscore its commitment to sustained growth and market leadership in both domestic and international arenas.
