Dabur Nepal to inject USD 80 million to expand production plant

Dabur Nepals major portion of production, mainly fruit juices, are meant for export to India.Dabur Nepal is one of the major tax-paying manufacturing industries in Nepal.

Dabur Nepal, the local entity of Indian FMCG major, will inject Rs 9.68 billion (USD 80 million) into its production plant in the Himalayan country, the company announced on Wednesday.

Nepal's investment board chaired by Prime Minister Sher Bahadur Deuba has approved the investment amount.

According to a statement issued by the Investment Board Nepal (IBN), the Fast-Moving Consumer Goods (FMCG) major has proposed to invest additional Rs 9.68 billion in its manufacturing plant for product diversification and capacity enhancement of its production units.

The company's current investment amounts to Rs 4.5 billion (USD USD 37 million).

The company has been targeting to expand its capacity in production of a variety of fruit juices and other consumer care products such as Dabur honey and Dabur hair oil.

Dabur International Ltd. has 97.5 per cent share in Dabur Nepal, while the remaining 2.5 per cent share is owned by Nepali investor Ishori Rana.

The products of Dabur Nepal hold a 5.34 per cent share in the country's total export earnings. Dabur Nepal's major portion of production, mainly fruit juices, are meant for export to India.

''Dabur Nepal is one of the major tax-paying manufacturing industries in Nepal. Dabur Nepal is planning to introduce a new line of fruit juices in the market soon and we are also bringing in some new products,'' Additional General Manager of Dabur Nepal Abhaya Gorkhalee said.

''Our new products will start coming into the market within a couple of months and the full expansion plan will be implemented within 2-4 years,'' Gorkhalee told PTI.

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