Dabur to set up maiden plant in South India, to invest Rs 400 crore in Tamil Nadu
Chennai/New Delhi, August 22
FMCG major Dabur India on Thursday said it would set up a Rs 400-crore manufacturing plant in Tamil Nadu's Villupuram district, marking the company's maiden foray into the South.
State Industries Minister TRB Rajaa said Dabur has signed a Memorandum of Understanding (MoU) with the state government to this effect on Thursday.
In a statement, Dabur India said the MoU outlines an approved Phase 1 investment of Rs 135 crore, scaling up to Rs 400 crore over five years.
The new plant set up in SIPCOT Tindivanam at Viluppuram district of Tamil Nadu would help Dabur scale up its business from South India further, which currently accounts for around 18-20 per cent of its domestic business.
The MoU was signed between Guidance Tamil Nadu, the investment promotion agency of the state, represented by its Managing Director Vishnu and Dabur India CEO Mohit Malhotra in the presence of Chief Minister MK Stalin, Industries Minister TRB Rajaa and Chief Secretary N Muruganandam.
"Welcome to Tamil Nadu, @DaburIndia! In fact, welcome to South India! In the presence of Honourable @CMOTamilNadu Thiru, @MKStalin avargal, @Guidance TN today signed an MoU with Dabur for the establishment of a world-class manufacturing plant, their FIRST EVER in South India, at the SIPCOT Food Park in #Tindivanam, Villupuram district," Rajaa said in a post on X.
He said the company would invest Rs 400 crore in the facility, which would create over 250 jobs.
"More importantly, it will open up new opportunities for farmers in the nearby #Delta region to sell #AgroProduce to be processed in this facility," he added.
Dabur India Chief Executive Officer Mohit Malhotra said, "This investment will allow us to better serve the growing demand for our products in South India and strengthen our market presence in the region. We look forward to contributing to Tamil Nadu's economic development by creating jobs and working closely with local vendors and supplier partners."
On January 31, Dabur India's board approved a Rs 135 crore investment to set up a new facility in the South, which would manufacture a range of its Ayurvedic healthcare, personal care, and home care products, such as Dabur Honey, Dabur Red Paste, and Odonil air fresheners.
The new facility would be designed with a focus on energy conservation in both its construction and operations, the statement said.