"The government policy is not favourable. Import duty on diapers comes to 15 per cent while the duty on raw materials is 26 per cent," Nobel Hygiene managing director Kamal Kr Johari told PTI.
A huge quantity of diapers is imported from Asian countries including China. Johari said manufacturing of diapers in India is still surviving because the freight to import is very high which somewhat nullify the duty disadvantage.
The company has invested some Rs 100 crore into extending product portfolio to cover a wide spectrum of consumers and the same will help in increasing its topline to Rs 200-250 crore in the current fiscal against Rs 150 crore in 2015-16.
In the baby diaper segment, the company has 5-6 per cent share in the Rs 5,000-crore market dominated by the MNCs brands.