Dabur starts Rajasthan unit

The Rs 12 crore plant will help the company cater to the North Indian region

Dabur Foods has set up its first state-of-the-art packaging facility in India at Newai in Rajasthan. The Rs 12 crore plant, located close to fruit-producing areas, will help the company cater to the North Indian region, which currently contributes 40 per cent of the sales of the company.

Rajasthan has a well-established network of transportation""vital for food products""and raw materials and power are available at competitive costs.

"The new plant in Newai is Dabur Foods' first foray into packaging in India. The plant will increase our capacity to package 40,000 kilo litres of juice and nectar in the first year of production, allowing us to serve an ever-increasing market. Economies of scale will make production more efficient and turn in Rs 20 crore, including Rs 5 crore from branded exports," said Amit Burman, chief executive officer, Dabur Foods Ltd.

The packaging of Dabur Foods' "Coolers"""a traditional fruit-based beverage""will be done in a centralised manner in Newai.

General Manager Sanjay Sharma said, "The location of the Newai plant will minimise our costs on freight and raw materials. With the centralised packaging for "Coolers" at the new plant, we are now geared up to introduce products and already have Muskmelon and Lemon-barley in the pipeline."

Dabur Foods is an integrated food services company with a presence in food procurement, processing, branding and providing related consultancy and services to partners.

Backward integration is part of the growth strategy, resulting in higher profitability, enhanced access to the best fruits, and complete control of the production process, helping Dabur Foods to strengthen its market leadership.

The company has invested heavily in the best available tetrapack technology for "Coolers" and will introduce it in new pack that gives a distinct identity to the brand.

The plant will have two production lines, one for 200 ml and one 1 litre, for packaging different products (Jamun, Aampanna, Watermelon Pomegranate, Musk Melon & Lemon-Barley).

Dabur Foods Ltd is a Rs 130 crore multi brand food services company with a presence in juices and ready to eat food categories. The product portfolio includes Real Fruit Juice, ACTIV, Coolers, Hommade, Capsico and Lemoneez.

The company has a distribution network that covers 55 cities and 1.25 lakh retail outlets.