Dabur India has signed a Memorandum of Understanding (MoU) with the Tamil Nadu government to establish a ₹400 crore manufacturing facility in Villupuram district, marking its first venture in South India, according to the company’s announcement in a BSE filing. The initial phase of this project involves an investment of ₹135 crore, which is expected to increase to ₹400 crore over the next five years. The project is anticipated to create direct employment for approximately 250 individuals and generate numerous indirect job opportunities.
Following this announcement, shares of Dabur surged by as much as 2% to reach an intraday high of ₹647.50 apiece on the BSE today. The stock opened higher at ₹638.45, compared to the previous closing price of ₹634.50 on the BSE, in sync with the strong broader market.
At the time of reporting, shares of FMCG giant ended 1.81% higher to reach ₹646.00, with the company’s market cap standing at ₹1,14,491.32 crore. The stock surged 1.50% over the past month, jumped 19.31% in the past six months, and rose 15.92% year-to-date (YTD).
Tamil Nadu’s Minister for Industries, Dr. T.R.B. Rajaa, announced the development on the X platform, welcoming Dabur to South India. He highlighted that the new facility would not only create jobs but also provide farmers in the nearby Delta regions with opportunities to sell their agricultural produce for processing at the plant.
Dr. Rajaa shared via X, "Welcome to Tamil Nadu,@DaburIndia! In fact, welcome to South India! In the presence of Honourable CMOTamilNadu Thiru. @MKStalin avargal, @Guidance_TN today signed an MoU with Dabur for the establishment of a world-class manufacturing plant, their FIRST EVER in South India, at the SIPCOT Food Park in #Tindivanam, Villupuram district. #Dabur will invest ₹400 crore in this facility which will create 250+ jobs. More importantly, it will open up new opportunities for farmers in the nearby #Delta region to sell #AgroProduce to be processed in this facility."
Dabur's advanced multi-category manufacturing unit, which will be located in SIPCOT Tindivanam, Tamil Nadu, is set to be one of the company’s most-modern and eco-friendly manufacturing plants, the FMCG giant states.
Highlighting the growing demand for Dabur’s products in South India, Mohit Malhotra, CEO of Dabur, 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,” he added.
