 "Dabur to invest Rs 250 crore to set up plant in Assam")
The FMCG giant Dabur India Limited has decided to invest Rs 250 crore in setting up a plant in Assam’s Sonitpur district. The Board of Directors of the company on Thursday approved the proposal to set up the plant in Assam. This would be Dabur’s maiden investment in Northeast region
Company sources told Business Standard that Dabur would invest additional Rs 250 crore in expanding manufacturing facilities in India in FY17.
“In order to meet the growing demand for products of the company, the Board of the Directors on Thursday approved a Capex of Rs 250 crore for setting up a manufacturing plant in Assam, which shall be financed through Internal accruals,” the company said in a filing to Bombay Stock Exchange (BSE).
The company would now move for necessary permissions and approvals and expect the plant to commence operations in the year 2017.
“Though details regarding the Assam plant would emerge only when the proposal goes to planning stage, but as of now we can say it would produce a whole lot of beauty and healthcare products that are presently produced in our other plants,” said the source.
The FMCG major March quarter net profit grew 17 per cent year-on-year (y-o-y) to Rs 333.4 crore, despite loss of sales because of lower supply of Real fruit juices. The company had posted Rs 284.9 crore net profit during the same period last year. The firm received Rs 2,157.3 crore in net sales, 11 per cent higher than Rs 1,994.8 crore in 2015.
