Dabur India Ltd, a leading player in the packaged consumer goods sector, has revealed plans to establish a new manufacturing facility in Tamil Nadu. The company signed a memorandum of understanding with the state government for this venture. The initial investment is set at Rs 135 crore, with a planned scale-up to Rs 400 crore over the next five years. This marks Dabur’s first manufacturing unit in South India, aimed at boosting production capacity for major brands like Red Toothpaste, Odonil, and Dabur Honey.

The investment is a strategic step in Dabur’s ongoing expansion efforts. Last year, the company began constructing its largest manufacturing plant in Madhya Pradesh, with an investment of Rs 550 crore. This facility will produce a variety of items, including food products, Ayurvedic medicines, and health supplements. With the Tamil Nadu plant, Dabur now operates 14 manufacturing facilities across India, with a significant portion of its business concentrated in the northern regions.

According to CEO Mohit Malhotra, the new Tamil Nadu plant will enhance Dabur’s ability to meet rising demand in South India and strengthen its regional market presence. The expansion comes at a time when consumer goods companies are broadening their reach to tap into the growing demand for branded products.

Dabur’s financial performance remains strong, with an 8% increase in consolidated net profit to Rs 500 crore for the June quarter. Revenue rose by 7% to Rs 3,349 crore. For FY24, the company reported revenue of Rs 12,404 crore and a net profit of Rs 1,843 crore.

Rahul Awasthi, Global Head of Operations at Dabur India, stated that choosing Tamil Nadu aligns with the company’s strategy of being closer to consumers. He also emphasized the benefits of sourcing agricultural products from local farmers, enhancing regional engagement.

Following the announcement, Dabur India’s shares rose by 1.7% to Rs 645 on the National Stock Exchange, reflecting positive market response.