Dabur Plans Market Expansion The company plans to open manufacturing unit in South India and is mulling expansion in the international markets such as the Middle East and Europe
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FMCG company Dabur is planning to set up a new factory in South India in less than a year's time, Dabur's CEO Mohit Malhotra told PTI. Around 20 per cent of its domestic sales come from South India with its business there doubling in the last five-six years, "We are identifying gaps and usages to launch products customized to the markets," he said.
The company, having 13 manufacturing units across the country, is augmenting its capacity further to meet the demand. Dabur India, which has an annual capex of around INR 350-450 crore, also plans to expand its manufacturing activities in the international markets such as the Middle East and Europe. Dabur's International business continued its strong growth momentum in Q2 of FY24 with a 23.6 per cent jump in constant currency terms in the second quarter. During the quarter, the MENA business grew by 18.4 per cent; Egypt by 35 per cent and the Turkey business by 78 per cent.
The result showed steady revenue and double-digit operating profit growth with improvement in gross margins led by moderating inflation, in Q2 of FY24. "We believe we are on the right path with our strategic playbook. We remain focused on managing our business with agility, leveraging our strong distribution footprint while enhancing our margins, quarter after quarter," Malhotra stated in a release.
On Dabur's business in South India, Malhotra said, "We have made substantial progress in South India… it now contributes 19 to 20 per cent of Dabur's domestic business. This was not even 10 per cent around seven to eight years back and thus contribution from the Southern region has doubled," he told PTI. Dabur's last investment to open a new unit was at Indore, where it invested around INR 350 crore.