Dabur India gains on inking MoU with Tamil Nadu Govt

Dabur India gained 1.50% to Rs 644 after the company announced that it has signed a memorandum of understanding (MoU) with Government of Tamil Nadu to invest Rs 400 crore in first manufacturing facility in South India, to create 250 jobs.

The said MoU outlines an approved Phase 1 investment of Rs 135 crore, scaling up to Rs 400 crore over a period of 5 years. This expected to generate direct employment for around 250 people, besides creating thousands of indirect job opportunities, it added.

The consumer goods manufacturing facility will be set up in SIPCOT Tindivanam, Tamil Nadu. This will be amongst Dabur's most-modern and environment-friendly manufacturing facilities with the capacity to manufacture a range of Dabur's products for the South market, stated the firm.

 

Mohit Malhotra, chief executive officer (CEO), Dabur India, said, This investment will allow us to better serve the growing demand for our products in South India and strengthen our market presence in the region. We look forward to contributing to Tamil Nadu's economic development by creating jobs and working closely with local vendors and supplier partners. The strategic location of the new unit will enhance Dabur's ability to meet business and logistical requirements more efficiently, thereby offering significant advantage and growth opportunities.

Rahul Awasthi, global head of operations, Dabur Inida, said. "We've chosen to set up a manufacturing unit in Tamil Nadu as part of our strategy to be closer to our consumers, while staying true to what matters most to us -- providing high quality natural and healthy products to our customers. Our new facility at SIPCOT will be equipped with the latest technology, allowing us to maintain the highest standards of quality and operational efficiency in everything we produce. This will also enhance our sourcing of agricultural produce from local farmers in Tamil Nadu.

The new facility will be designed with a focus on energy conservation in both its construction and operations. Emphasizing environmental responsibility, Dabur plans to construct an energy-efficient building while deploying the latest technology for effluent treatment, the company stated in the press release.

Dabur India is among the top four FMCG companies in India. It has business interests in healthcare, personal care and food products. The company offers products in over 100 countries across the globe, covering health and personal care segments across the herbal and natural space.

The companys consolidated net profit increased 8.27% to Rs 494.35 crore in Q1 FY25 as compared with Rs 456.61 crore in Q1 FY24. Revenue from operations jumped 6.98% YoY to Rs 3,349.11 crore in Q1 FY25.

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