Dabur India invests $16 mn in fruit-based manufacturing facility

Sara Pathirana

Leading FMCG manufacturer, Dabur India Ltd. has invested $16 million on a manufacturing facility for packaged fruit-based beverage in Sri Lanka recently. This would be the company’s largest overseas venture to date. The total cost could go up to $21 million after further additional facilities are introduced.

Dabur India is a $ one billion enterprise with a legacy of over 127 years. The company’s new facility, which is a wholly-owned subsidiary, is located in Mirigama, Gampaha. With an initial direct staff of 75 people and indirect staff of about a 100 for means of housekeeping, security etc. from the local area and beyond, the focal point is to gradually increase the number of employees according to demand and capacity expansions. The new plant, Dabur Lanka was initiated after signing an agreement with the Board of Investment of Sri Lanka (BOI) in September, 2011 and the main objective of the facility is to produce fruit juice for their signature brand “Real” for exporting to South India and other countries.

Raw material which is mainly, the fruit pulp, is imported from the best suppliers of fruit globally and Dabur Lanka is also looking to evaluate local produce like pineapple and sugar for future utility into their ingredients. A 50 acre land was first acquired by a private owner and the fast pace of construction of the plant began nearly seven months ago. The manufacturing facility has been built in full compliance with the green principles by utilizing environment-friendly building practices during construction.

The demand for fruit-based juices and beverages under the “Real” brand has reported strong growth; Dabur’s Food business had reported an over 25% growth in 2012-13.

“With this instigation being Dabur’s first project in Sri Lanka, we foresee many more projects to come, thereby, promoting Dabur’s brand and help the Srilankan economy in the long-run,” Dabur India Ltd. Chairman, Dr. Ananda C. Burman acknowledged.