TN's FAST-MOVER ADVANTAGE FOR CONSUMER GOODS
It's raining investments in Tamil Nadu's Fast-Moving Consumer Goods (FMCG) sector as domestic and MNC majors are lining up to set up manufacturing facilities in the state. While Godrej Consumer Products (GCPL) inaugurated its first integrated greenfield plant at Tiruporur near the city last month (March 2025), Dabur India is breaking ground for its first factory in south India at Tindivanam in Villupuram district soon.
Global food and beverage conglomerate PepsiCo is launching a manufacturing plant at the Sipcot food industrial park at Manapparai in Trichy district to make potato chips and snacks at an investment of more than 500 crore, according to sources in the state industry department. Official sources told TOI that Hindustan Unilever (HUL) has also evinced interest in establishing a factory at Manapparai to manufacture Boost, Horlicks and other malted drinks.
Tamil Nadu is an ideal location for Dabur to cater to the entire south India market. Logistically, Tindivanam is at the hub of three of its major distribution centres in south India, said Dabur India's global head of operations Saurabh Lal. "So, it is ideal from the perspectives of 'depot delivered cost' and serviceability. Also, we procure a lot of raw material from nearby areas. This unit will help enhance our sourcing of agricultural produce from local farmers. The food park, where this unit will be located, also offers excellent infrastructure. So, from sourcing to overall cost model, this was our best option," he adds.
The company will be investing 135 crore in phase I, which will be scaled up to 400 crore over a period of five years. Dabur would be manufacturing products such as toothpaste, honey, Odonil air fresheners and items within the F&B portfolio such as Real fruit juices.
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The state's robust infrastructure and progressive industrial policies made it a natural choice even for GCPL's first integrated greenfield manufacturing facility. The 515 crore facility at OneHub Chennai Park in Chengalpet district is manufacturing multiple product categories and brands such as Cinthol, GoodKnight, Aer, and Godrej Expert hair colour under one roof.
"As production scales up, this facility will offer pan-India service. Given our significant presence in international markets—especially in Asia, Africa, and Latin America—we do foresee opportunities to leverage this facility for exports in the future," said Saurabh Jhawar, head - product supply organization for India & SAARC, GCPL.
Interestingly, women form a sizable workforce in these plants. Godrej plans to employ 1,000 workers in its Chengalpet plant, of which 50% will be women. It's a trend mirrored even in Pudukkottai, where women from nearby villages make up more than 75% of the workforce in ITC's Integrated Consumer Goods Manufacturing and Logistics Unit (ICML). The facility set up in 2018, encompasses 12 lakh sq ft and its portfolio includes Yippee! instant noodles, Bingo! snacks, Sunfeast Dark Fantasy, Sunfeast Marie and Aashirvaad Atta. "Tamil Nadu has emerged as an important demand centre for ITC. The support of various govt departments and ease of doing business are key factors for choosing TN as a destination for setting up manufacturing facilities," Jayendra Gupta, VP, technology & manufacturing, foods division, ITC, saidd.
While Tamil Nadu's infrastructure and talented manpower are regarded as givens in its industrial allure, there are other factors that stakeholders point out as drivers of growth. The state is a high consumption, premium market.
"It is gradually emerging as a hub for FMCG companies, mainly to cater to the south Indian markets," notes C K Ranganathan, CMD of Cavinkare. It's a view echoed by industry bodies as well, thanks to Tamil Nadu's status as one most urbanised states in the country. "The state boasts extensive infrastructure including four major ports. FMCG companies can use TN as their R&D base given its deep thinking ecosystem comprising the TNAU, National Institute of Food Technology, Entrepreneurship and Management in Tanjore, and the National Research Centre for Banana in Trichy," explains CII southern region deputy chairman and Danfoss India president Ravichandran Purushothaman.
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