Dabur India is investing Rs 70 crore on a new unit in Sri Lanka to produce its Real brand of fruit-based beverages. Taking advantage of the Free Trade Agreement between the two countries, the company will use the new unit in Gampaha to service southern Indian markets. Also, to add to its base of plants making consumer goods spread in different geographies, it is also now exploring the feasibility of setting up a new manufacturing facility in South Africa for a range of personal care products.
Elaborating on the plans for the Sri Lankan market, Sunil Duggal, Chief Executive Officer, Dabur India, termed the decision as “strategic” and one which gave the company a “competitive advantage”. “With a plant in Sri Lanka, the freight costs for shipping juices to South India would be much cheaper and would give the company greater penetration and presence in this market,” he said. There would be tax advantages as well.
The new Sri Lankan plant, spread over 50 acres, will have the capacity to produce 2.8 lakh cases of fruit-based beverages and is expected to be commissioned by September 2012.