Dabur India Ltd will set up its first plant in Southern India and has inked an MoU with the Government of Tamil Nadu. The company said on Thursday that, in the first phase, it will invest ₹135 crore in the manufacturing facility, which will be scaled up to ₹400 crore over a period of five years. The plant is expected to become operational within a year.

In a BSE filing, the company said that the state-of-the-art multi-category manufacturing facility will be set up in SIPCOT Tindivanam, Tamil Nadu. The FMCG major said this will be among its “most modern and environment-friendly manufacturing facilities“, with the capacity to manufacture a range of products for the Southern market, including Red Toothpaste, Odonil, and Honey,

“This is expected to generate direct employment for around 250 people, besides creating thousands of indirect job opportunities,” it added.

An MoU was signed on Thursday between Guidance Tamil Nadu, represented by its Managing Director V.Vishnu, and Dabur India, represented by Chief Executive Office Mohit Malhotra, in the presence of Tamil Nadu Chief Minister M K Stalin, it added.

In a post on X, TN’s Industries Minister TRB Rajaa said, “Dabur is renowned for its home care, personal care, and juice products, and its decision to choose #TamilNadu is a testament to our State’s thriving industrial ecosystem & availability of a work-ready labour force. We will soon get to taste Real Juice, #MadeInTamilNadu!” He added that this will also open up new opportunities for farmers in the nearby Delta region to sell agro produce to be processed in this facility.

In a statement, Dabur India CEO Mohit Malhotra 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.