Dabur Eyes South Foothold With Rs 400 Crore Tamil Nadu Plant
The deal is set to generate direct employment for around 250 people along with thousands of indirect jobs, the company said.
Dabur India Ltd. signed a memorandum of understanding with the government of Tamil Nadu to set up a manufacturing facility with an investment of up to Rs 400 crore over five years.
The fast-moving consumer goods company—in its first such unit in South India—approved a phase 1 investment of Rs 135 crore, which will scale up to Rs 400 over a five-year period, the company said in an exchange filing on Thursday.
The deal is set to generate direct employment for around 250 people along with thousands of indirect jobs, the company said.
The agreement was signed between Guidance Tamil Nadu—an investment promotion agency of the Government of Tamil Nadu—represented by its Managing Director Vishnu IAS and Dabur Chief Executive Officer Mohit Malhotra in the presence of the Chief Minister, MK Stalin.
This facility will be among Dabur's most modern and environmentally friendly manufacturing factories, it said. The new facility will be designed with a focus on energy conservation in both its construction and operations, the statement 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, Malhotra said. "We look forward to contributing to Tamil Nadu's economic development by creating jobs and working closely with local vendors and supplier partners."
Shares of Dabur rose as much as 2.10% to Rs 647.7 apiece on the NSE. It was trading 1.54% higher at Rs 644.1 apiece, compared to a 0.26% advance in the benchmark Nifty 50 as of 12:11 p.m.
