Dabur Sourcing Amla, Hajmola From Nepal Unit

Fast moving consumer goods (FMCG) major Dabur is sourcing Dabur Amla hair oil and Hajmola candy from its manufacturing operations in Nepal to cater to the neighbouring Bihar and Uttar Pradesh markets.

The capacity utilisation of the Amla hair oil and candy products in Nepal has been enhanced recently in view of the growing demand for these products in these markets, said a company official.

The turnover of Dabur Nepal Pvt Ltd, a subsidiary of Dabur India Ltd, touched Rs 130 crore during the last financial year -- a growth of 19 per cent over the turnover in the previous fiscal (as per the financial year practised by the Indian parent). It is expected to grow substantially during the current financial year, the official added.

 

Out of the Rs 130 crore sales of the Nepalese arm, around Rs 120 crore came from the exports to the Indian market. Dabur Nepal was initially set up to cater to the market there.

The manufacturing of Hajmola candy and Amla hair oil in Nepal follows the success in manufacturing and marketing of Real fruit juices in the Himalayan country since the past few years. Among the other businesses being undertaken in Nepal are bee-keeping, export of bulk-processed honey and manufacture of Glucose D and C.

Dabur set up shop in Nepal since the government in that country had encouraged foreign investments in the backward areas by offering tax benefits. Also because of the Indo-Nepal Friendship treaty, goods manufactured in Nepal are exempt from customs duties at the borders.

The official said Dabur would use its Nepal operations to cater primarily to the bordering states in the northern India. With the facilities based in Birganj close to the Indo-Nepal border, the logistic costs involved is considerably reduced.

Dabur Nepal has also installed a new TetraPak line to pack juice in 200 ml, 500 ml and 1000 ml. Commercial production of the new packs has already started.

Also due to the fast propagation and ready availability of natural herbs in the forests of Nepal, Dabur has set up greenhouses at Banepa to propagate 15 lakh saplings of around 40 endangered species of medicinal plants. Similar activity is also being undertaken at other locations.