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.