Dabur India Ltd, the leading ayurveda-based health and personal care company, today announced plans to invest Rs15 million (Rs70 crore) for setting up a fruit-based beverages manufacturing unit in Sri Lanka.
Dabur is setting up a subsidiary, Dabur Lanka (Pvt) Ltd, which will manufacture fruit-based beverages for exports, the company said in a filing with the Bombay Stock Exchange (BSE).
Dabur Lanka has signed an agreement with the Board of Investment of Sri Lanka on 22 September, to establish this venture.
The project, with a manufacturing capacity of 2.8 lakh cases of fruit-based beverages a month, will come up in a 50-acre site in Gampaha, north of Colombo and the plant is expected to be commissioned in August-September 2012.
"The demand for our fruit-based juices and beverages under the Réal brand has been reporting strong growth month-on-month. Dabur's food business had reported an over 28 per cent growth in 2010-11 despite supply constraints. As continued high growth is expected in the future too, we are setting up this new facility to augment our production capacity for fruit-based beverages and meet the growing demand for our products," Dabur India Ltd CEO Sunil Duggal said.
Dabur already has manufacturing presence in Nepal and Bangladesh and the Sri Lanka unit further strengthens its presence in the SAARC region.