Get All Access for $5/mo

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

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Company

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.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Leadership

Visionaries or Vague Promises? Why Companies Fail Without Leaders Who See Beyond the Bottom Line

Visionary leaders turn bold ideas into lasting impact by building resilience, clarity and future-ready teams.

Marketing

5 Critical Mistakes to Avoid When Giving a Presentation

Are you tired of enduring dull presentations? Over the years, I have compiled a list of common presentation mistakes and how to avoid them. Here are my top five tips.

Science & Technology

Why Businesses Are Relying on Automation to Survive the Labor Crisis

Robots are revolutionizing industries by addressing labor shortages and enhancing efficiency, while businesses navigate challenges like workforce adaptation and high implementation costs.

Business News

Former Steve Jobs Intern Says This Is How He Would Have Approached AI

The former intern is now the CEO of AI and data company DataStax.

Green Entrepreneur®

How Global Business Leaders Can Build a Sustainable Supply Chain

Businesses can build sustainable supply chains by leveraging technology to reduce environmental impact, optimize resources and track emissions while balancing operational efficiency and sustainability goals.