Dabur plans to set up manufacturing plant at Egypt

KOLKATA: In a bid to expand its international presence, Dabur is planning to set up a new manufacturing plant at Egypt. The proposed facility will be Dabur���s second unit in Egypt for production of personal care products. The plant will support the company���s foray into East, North and South Africa where it is in the process of setting up a distribution network.

The investment behind the new plant will be more than Rs 15 crore. "We plan to make Egypt our major sourcing base for Africa and other nearby markets. Egypt is a low cost manufacturing site and has several trade treaties which will allow us to enjoy custom benefits by exporting from there," Dabur India chief financial officer Rajan Varma told ET.

Dabur���s new Egypt plant is expected to be operational in 2-3 months. The FMCG major is also rapidly expanding its presence in Africa and is setting up its distribution network in Kenya and Tanzania. Dabur already has a sizeable presence in Nigeria where it is the third largest oral care brand.

"In another 2-3 quarters, we expect to start full-fledged operations in Africa. We are also open to the idea of floating a subsidiary and acquisitions in Africa as we grow our business. Over here, we will launch products like hair oil, skin cream, shampoo and tooth paste," said Mr Varma.

Dabur expects its international business will grow by around 30% for the next couple of years, despite the downturn. This will be twice the pace of the growth Dabur is witnessing in its domestic business. The overseas business accounts for around 20% of Dabur���s revenue. Sales in some key geographies like Egypt grew by 100% and US by 36%.

The key product categories that drove growth for the international business include hair cream, toothpaste, hair oil and conditioner. In the last fiscal, Dabur forayed into several new markets like Algeria, Lebanon, Turkey, Mauritania and China.