Dabur to Invest Rs 400 Crore in Tamil Nadu, Set Up First Manufacturing Plant in South India

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Consumer goods major Dabur India Ltd has announced a Rs 400 crore investment in Tamil Nadu to establish its first-ever manufacturing facility in South India. The company signed a Memorandum of Understanding (MoU) with the Government of Tamil Nadu to set up a state-of-the-art plant at the SIPCOT Food Park in Tindivanam, located in Villupuram district.

The development marks a significant expansion of Dabur’s manufacturing footprint and strengthens Tamil Nadu’s position as a preferred destination for industrial investment.

MoU Signed in Presence of Chief Minister



The announcement was made by Tamil Nadu’s Industries Minister, Dr TRB Rajaa, through a post on social media platform ‘X’. The MoU was signed by Guidance Tamil Nadu in the presence of Chief Minister MK Stalin.

Welcoming Dabur to the state, Minister Rajaa described the project as the company’s “first ever in South India” and emphasized that the facility would be a world-class manufacturing unit. He highlighted that Tamil Nadu’s thriving industrial ecosystem and skilled workforce played a crucial role in attracting the investment.

Investment Details and Phased Expansion

The total planned investment stands at Rs 400 crore. Dabur stated that the project will begin with an initial investment of Rs 135 crore, which will be gradually scaled up to the full Rs 400 crore over the next five years.

This phased expansion approach will allow the company to progressively build capacity in line with market demand while strengthening its supply chain network across southern states.

According to Dabur’s official statement, the facility will be among its most modern and environmentally friendly plants, designed to meet evolving sustainability standards.

Employment and Economic Impact

The upcoming manufacturing plant is expected to generate direct employment for approximately 250 individuals. In addition, it is likely to create thousands of indirect job opportunities across logistics, packaging, raw material supply, and ancillary services.

Minister TRB Rajaa stressed that the project would have a positive ripple effect on the local economy, particularly benefiting farmers in the nearby Delta region. The facility will process agro-produce sourced locally, opening up new and stable market opportunities for farmers.

“Dabur will invest Rs 400 crore in this facility which will create 250 plus jobs. More importantly, it will open up new opportunities for farmers in the nearby Delta region to sell agro-produce to be processed in this facility,” the minister stated.

He added that the project aligns with the state’s efforts to strengthen food processing industrial linkages in the Delta region.

Boost for Farmers and Food Processing Sector

The SIPCOT Food Park at Tindivanam is strategically located to facilitate agro-based industries. By setting up operations there, Dabur aims to integrate local sourcing into its production model.

This move is expected to strengthen the food processing ecosystem in Tamil Nadu and enhance value addition for agricultural produce. The state government views the project as a significant step toward empowering rural communities while driving industrial growth.

Minister Rajaa also noted that both he and Chief Minister MK Stalin share strong roots in the Delta region, adding a personal dimension to the push for industrial development in the area.

Strengthening Dabur’s Southern Market Presence

Dabur India CEO Mohit Malhotra expressed gratitude to the Tamil Nadu government and its departments for their proactive support in facilitating the project.

“We are grateful to the Government of Tamil Nadu, particularly the Department of Industries led by Hon’ble Minister Dr TRB Rajaa for his personal and proactive support and guidance, teams in Guidance Tamil Nadu, and SIPCOT, for their wholehearted support in facilitating this project. 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,” Malhotra said.

The new plant will manufacture a wide range of Dabur’s products, including items from its home care, personal care, and juice segments, catering specifically to rising demand in southern markets.

A Strategic Expansion Move

Dabur’s decision to establish its first South India manufacturing facility in Tamil Nadu reflects the state’s growing reputation as an industrial hub. With robust infrastructure, skilled manpower, and strong policy support, Tamil Nadu continues to attract major domestic and global investments.

For Dabur, the new facility not only enhances production capacity but also reduces logistics costs and improves supply chain efficiency for southern states. For Tamil Nadu, the project reinforces its commitment to industrial growth while supporting farmers and creating employment.

The Rs 400 crore investment represents a win-win collaboration between the private sector and the state government, paving the way for sustained economic growth in the region.

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