DECEMBER 20239CENTRAL GOVERNMENT TO EXTEND INCENTIVES FOR LOCAL MANUFACTURINGDABUR TO SET UP NEW MANUFACTURING UNIT IN SOUTH INDIAThe central government has announced that any incentives offered to promote local production of electric vehicles will be available to both foreign and domestic investors. This comes after automakers in India raised concerns regarding potential import duty concessions for American carmaker Tesla.According to senior government officials, Tesla has requested temporary tariff concessions in order to establish a manufacturing facility in India. However, New Delhi is opposed to granting any specific exemptions to individual companies. An official stated that the government's focus is on the industry as a whole rather than any particular company, emphasizing the strength of domestic companies in the sector. They also mentioned that any incentives provided will be equitable for both domestic and foreign investors.Local carmakers have expressed concerns about extending concessional tariffs to Tesla before policy guidelines are solidified. They believe that this move will negatively affect the significant amount of investments they have already made or are planning to make in producing electric vehicles in the country. Dabur, a prominent FMCG and ayurvedic products manufacturer is preparing to establish a new facility in South India within the next twelve months. This move comes as the company's business expands in the region, as stated by CEO Mohit Malhotra. During an interview with PTI, it was revealed that Dabur is currently obtaining 20 percent of its domestic sales from South India, with its business in the region having doubled in the last 5-6 years. In response to this growth, the company is now identifying gaps and usages in order to launch products customized to the markets.He added that the company, with 13 manufacturing units nationwide, is expanding its capacity to meet demand and diversifying its manufacturing activities by introducing new product lines. Dabur India, with an annual capex of approximately Rs 350-450 crore, is also looking to enlarge its manufacturing operations in international markets, specifically targeting the Middle East and Europe.Furthermore, the company is streamlining its manufacturing operations by closing down units facing tax sunsets and opening new units in preparation for the GST regime, according to Malhotra. TOP STORIES
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