Dabur’s shares rally on announcing new manufacturing plant in Tamil Nadu | News on Markets
Shares of Dabur India surged as much as 2.04 per cent at Rs 647.50 per share on the BSE in Thursday’s intraday deals. This came after the Tamil Nadu government announced on Thursday that Dabur India, a home and personal care products manufacturer, will invest Rs 400 crore to establish a new manufacturing plant in Villupuram district.
This will be Dabur’s first venture into the South. State Industries Minister TRB Rajaa highlighted that the agreement signed today underscores Tamil Nadu’s strong industrial ecosystem and its skilled labour force.
The Memorandum of Understanding (MoU) signed by Dabur and Tamil Nadu government outlines an initial investment of Rs 135 crore, with plans to expand to Rs 400 crore over five years, creating approximately 250 direct jobs and numerous indirect opportunities.
The new facility will be located in SIPCOT Tindivanam and will be one of Dabur’s most modern and eco-friendly plants, designed to cater to the South Indian market.
“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,” said Mohit Malhotra, CEO, Dabur India.
Dabur India reported an 8 per cent increase in net profit for Q1 FY25, reaching Rs 500 crore compared to Rs 463 crore in the same period last year.
The FMCG company, known for products like Real fruit juice and Hajmola candy, saw net sales rise by 7 per cent to Rs 3,349 crore, up from Rs 3,130 crore year-on-year. Volume growth for the quarter was 5.2 per cent.
At 01:54 PM; the stock of the company was trading 1.60 per cent higher at Rs 644.65 per share on the BSE. By comparison, the BSE Sensex was up by 0.22 per cent at 80,080 levels.
First Published: Aug 22 2024 | 2:01 PM IST
