Dabur India Announces ₹400 Crore Investment for New Tamil Nadu Plant: A Game-Changer for FMCG Sector

Dabur India Ltd is building a new factory in Tamil Nadu with an initial investment of ₹135 crore. The company plans to increase this investment to ₹400 crore over the next five years. This will be Dabur’s first manufacturing unit in southern India.

The new plant will help Dabur produce more of its popular products, like Red Toothpaste, Odonil, and Honey. Dabur signed an agreement with the Tamil Nadu government for this project on Thursday.

Last year, Dabur also started building its largest plant in India in Madhya Pradesh, with an investment of ₹550 crore. This facility will produce food products, Ayurvedic medicines, and health supplements.

Dabur, which currently has 14 manufacturing plants in India, is expanding its capacity to meet rising demand for its products in southern India. CEO Mohit Malhotra said the new plant will help Dabur serve southern consumers better and boost its presence in the region.

In the June quarter, Dabur reported an 8% increase in net profit to ₹500 crore and a 7% rise in revenue to ₹3,349 crore. For FY24, Dabur’s revenue was ₹12,404 crore, with a net profit of ₹1,843 crore.

The new facility will also support local farmers in Tamil Nadu by sourcing agricultural produce from them. Dabur’s share price was up 1.7% to ₹645.00 on the National Stock Exchange on Thursday.