Dabur to invest Rs 550 crore in a modern manufacturing unit in MP

The company breaks ground for a new factory in Madhya Pradesh
Dabur to invest Rs 550 crore in a modern manufacturing unit in MP
The new unit would manufacture a range of Dabur's food products, ayurvedic medicines, and health supplements.Photo - Dabur

Responding to the Government's Make in India policy push and Honorable prime minister Narendra Modi's clarion call for the building an Atmanirbhar Bharat, India's leading Ayurvedic Healthcare company Dabur India on 23 June 2021 commenced construction of its largest, most modern, and environment-friendly manufacturing facility in Madhya Pradesh. Being set up with a phased investment of around Rs 550 crore, this new unit would manufacture a range of Dabur's food products, ayurvedic medicines, and health supplements.

On 23 June 2021, a ground-breaking ceremony was organized at the site, which Dabur India executive director-Operations Shahrukh A Khan and senior officials from the state government attended. However, the ceremony was limited to a small group to respect social distancing norms and Covid-19 standard operating procedures.

The first phase of construction of this new facility – which has been planned under the Mega Projects Scheme of the Madhya Pradesh Government and the Central Government's Production-Linked Incentive (PLI) scheme – is scheduled for completion by the end of 2021-22 financial year. Located in the SMART Industrial Park near Indore, this unit would provide direct cum indirect employment to around 1,250 people initially and over 3,000 people at the end of the final phase.

Speaking about the new factory, Mohit Malhotra, chief executive officer, Dabur India, said, "This project is the largest single investment by Dabur in the state of Madhya Pradesh, and is a clear commitment on our part towards promoting the traditional science of Ayurveda. We have a clear growth strategy in mind, and to achieve our ambitious goals, we need modern, state-of-the-art, high-performance plants. This new facility will provide us the space needed to rapidly expand our production capacity to satisfy the growing demand for Ayurvedic products and medicines and develop and launch innovative food products for the future. The new factory is a step forward towards strengthening our position as the world's largest Ayurvedic products and medicines manufacturer and a market leader in the Indian Foods and Beverages category."

Since the Covid outbreak, demand for Ayurvedic products has seen rapid growth. Building on its 137-year-long heritage, Dabur has been developing products based on Ayurveda to support the consumers' growing need for holistic health and well-being. Khan added, "This significant investment reflects Dabur's confidence in the future of Ayurveda and our strong commitment to Madhya Pradesh as a strategic manufacturing hub."

Spread over 51 acres of land, this new plant will become one of the most extensive manufacturing facilities for Dabur worldwide and possess cutting-edge technology to make world-class products. Khan further added, "The plant would feature fully automated processing and packing lines as well as state-of-the-art warehousing infrastructure to optimize supply chain and quality management. Moreover, with its stringent quality control mechanism and highly hygienic production environment in place, consumers can be sure that products coming out of this factory will offer best-in-class quality while adhering to world-class Good Manufacturing Practice (GMP) standards."

The company mentioned, as part of Dabur's strong commitment to "Green Company" principles, the new facility will incorporate energy conservation in its design and operation. Particular focus is also being given to the environment, with the company planning to construct an energy-efficient building besides deploying state-of-the-art technology for effluent treatment. Dabur will also extend its Corporate Social Responsibility (CSR) program to the local community as part of its commitment to community development in areas where it operates.

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