Nivea's imports to be cut to half

The Sanand facility would manufacture most of Nivea's products in India

Nivea India Private Ltd, an affiliate of German personal care major Beiersdorf, said on Monday that its imports to India would halve once its Sanand manufacturing facility comes on stream in March 2015. The company is setting up its first manufacturing plant in the country at Sanand near Ahmedabad in Gujarat, with an investment of around Rs 1,000 crore.

Sanand would also house a research and development centre that would focus on developing products specific to the Indian market.

The company has taken up about 72,000 sq. mt space at the Gujarat Industrial Development Corporation estate at Sanand, and held a ground-breaking ceremony here on Monday. The Sanand plant is expected to manufacture most of Nivea’s products in India including creams, lotions, lipcare, men’s care range, deodorants, etc.

“India is an important market for us, and we expect to be one of the top five markets for us globally within the next 10-15 years,” said Stefan De Loecker, corporate president (emerging markets) at Beiersdorf Near East.

With a local manufacturing facility, Nivea products would become more affordable. “We want to develop products specific to India, that are more affordable and can reach out to a wider range of customers. Our aim is not to go to the lowest price point, we would keep the quality the same,” he added.

The company, however, did not wish to share the details on pricing.