Global skin care firm Nivea on Monday announced to set up its first ever manufacturing plant in India at Sanand near Ahmedabad.
Apart from the manufacturing facility, Nivea India, an affiliate of Germany-based Beiersdorf AG, will also set up its R&D centre at the Sanand-based factory, which will focus on innovations for Indian consumers as well as other markets, said Managing Director of Nivea India, Rakshit Hargave, during the ceremony of the factory.
"The GIDC (Gujarat Industrial Development Corporation) alloted us 72,000 sq meters of land at Sanand to set up our first manufacturing unit as well as R&D center in India. The plant will be operational by March 31, 2015 with the initial production capacity of more than 50 million units of skin and personal care products," said Hargave.
He, however, did not share the quantum of investment for the plant.
Hargave was accompanied by several top executives of Beiersdorf AG, including chairman and supervisory board of Beiersdorf AG Reinhard Pollath and executive board member Stefan De Loecker.
On the question why they selected Gujarat for their first plant in India, Loecker said that the state provides favourable environment to grow.
"Gujarat provides an 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 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 added.
The factory will also include a research & development (R&D) centre which will focus on innovations especially for Indian consumer needs and and other markets, the company said in a statement later in the day.
Nivea's product range in India includes bathcare, body care, deodrants, face care, men's care and lip care.