Nivea to set up first Indian plant at Sanand in Gujarat

Nivea, the multinational company best known for its skin-care products, today announced that it would up its first manufacturing plant in India at Sanand, the rapidly expanding industrial hub near Ahmedabad in Gujarat.

Apart from the manufacturing facility, Nivea India, an affiliate of Germany-based Beiersdorf AG, will also set up a research & development centre at the Sanand-based factory, which will focus on innovations for Indian consumers as well as other markets, Nivea India managing director Rakshit Hargave said during the ground-breaking ceremony of the factory.

"The GIDC (Gujarat Industrial Development Corporation) allotted us 72,000 square metres of land at Sanand to set up our first manufacturing unit as well as R&D centre in India. The plant will be operational by 31 March 2015 with the initial production capacity of more than 50 million units of skin and personal care products," Hargave said.

He did not disclose how much the company would invest in the plant.

Hargave was accompanied by several top executives of Beiersdorf AG, including chairman and supervisory of board of Beiersdorf AG, Reinhard Pollath, and executive board member Stefan De Loecker.

Asked why they selected Gujarat for their first plant in India, Loecker said that the state provides a ''favourable environment'' to grow.

''The local authorities, such as GIDC, extended great support and help to realise our dream. Besides, this state has well-established universities, which will help us in hiring skilled manpower," said Loecker.

Nivea hopes to cut their imports from other countries after the plant becomes operational.

"Nivea has been present in the Indian market since the 1930s. At present, we import almost 60 per cent of our products. With this facility, our imports will be reduced. It will also help us in providing more affordable products to Indian consumers," Hargave said.

The new facility will also have a research & development centre which will focus on innovations especially for Indian consumer needs.

Nivea's product-range in India includes bathcare, body care, deodrant, face care, men's care and lip care products.