Dabur, a well-known producer of FMCG and ayurvedic products, plans to open a new plant in South India in the coming year as a result of the region’s rapid expansion of its business. Dabur is strategically identifying market gaps to introduce customized products, as evidenced by the double-digit increase in its domestic sales over the past five to six years, with 20 percent coming from South India. The action is a component of the business’s larger strategy to increase manufacturing capacity and diversify production lines in response to the retail industry’s growing demand.
South India now contributes twice as much to Dabur’s domestic business as it did two years ago, according to the company’s CEO, Mohit Malhotra. Dabur is concentrating not only on the home market but also on international markets, particularly the Middle East and Europe, with an annual capital expenditure of around Rs 350–450 crore. The company is reorganizing its manufacturing processes, closing locations under tax regimes that are about to expire, and establishing new locations under the GST system.
In order to produce goods that are specifically suited for the region, Malhotra highlighted the creation of a framework known as RISE (Regional Insights, Speed, and Execution). The company wants to increase its saliency by launching more region-specific products, even though some brands—like Dabur Red, Honey, and Odonil—are well-known in South India. Notwithstanding significant advancements, Dabur recognizes a growth disparity of 10-15% in relation to rivals, designating the Southern region as a strategic focal point for global expansion.
Considering global markets, Dabur sees a lot of potential for expansion in the Middle East and North Africa (MENA), with plans to establish manufacturing facilities in Saudi Arabia. Through trade agreements, the company already serves a number of regions from its manufacturing facilities in South Africa, Egypt, Turkiye, and the United Arab Emirates. Dabur notes that despite geopolitical obstacles, international markets are showing signs of recovery following COVID-19, but caution is still advised in light of the unpredictability of the world economy.
