Indian Economy News

Nivea's first India plant at Sanand

Ahmedabad: Personal care player Nivea India on Monday initiated construction for its greenfield facility, the first in India, at Sanand near Ahmedabad.

Senior company officials and German representatives, including Reinhard Pollath, Chairman of the Supervisory Board of Beiersdorf AG, and Mishcel Ott, Deputy Consul-General of Germany, were present at the ceremony.

The facility, being set up for Rs. 1,000 crore, is scheduled to be ready by March 2015. Nivea had purchased about 72,000 square metres at Sanand GIDC in February for the plant.

“An important aspect of the plant is the Research and Development centre,” said Stefan De Loecker, Senior Vice President (Corporate), Near East Region, Beiersdorf. “The centre will focus on establishing products according to the needs of the Indian consumers. Secondly, it will be used for innovation in packaging to make it more economical,” he added.

Nivea sells around 50 million units of its different products every year in India. The company has to import nearly 50-60 per cent of its total requirement, and some of it is met through outsourced production. The new plant would help the company reduce its imports by half.

Rakshit Hargave, MD, Nivea India, said, “Accordingly, the prices will also get more attractive and affordable.”

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.