Haleon to Set Up First Manufacturing Facility in India
In a strategic decision, Haleon announced it will invest around Rs.2,000 crore (£175 million) to establish its initial manufacturing plant in India, one of its rapidly expanding markets.
The firm is establishing a contemporary greenfield location in Pithampur, Madhya Pradesh centered on oral care, anticipated to become operational by 2029-30.
Brian McNamara, Chief Executive Officer, Haleon says, “This will be our largest investment in India, where we see significant potential for the future. It will strengthen our supply chain, our resilience, and our agility, while reducing the reliance on imports into India”.
“This will also allow us to respond faster to local needs, particularly in oral health, which is a business where we have seen consistent double-digit growth. It directly supports our growth strategy in India, which is focused on innovation-led premiumization.”
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The facility will not only cater to India but will also export goods to additional Asian markets in the future.
The firm's portfolio features Sensodyne, Parodontax, Pronamel, Centrum, Eno, Otrivin, Iodex, and Crocin. India ranks as the second biggest market worldwide for its oral care brand Sensodyne.
Kedar Lele, CEO India and President, Haleon ISC adds, “While this facility will make our operations self-sufficient for India, we also expect this facility to become a key part of our global manufacturing network and export to key markets in the wider Asia region”.
The investment comes at a time when India’s consumer healthcare market is projected to reach over $23 billion by 2030. “Emerging markets represent 35 per cent of our portfolio, but drive over 50 percent of our growth, and India is a critical contributor to that disproportionate growth. Last year, we laid out a global ambition to reach one billion additional consumers by 2030, and India plays a key role in that, contributing 300 million of those consumers alone. It is a highly compelling long-term growth opportunity for Haleon,” McNamara notes.
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Regarding the West Asia conflict’s effects on consumer sentiment, McNamara stated that the company's investment choices are determined by medium and long-term growth expectations. “In India, global oil prices haven’t fully translated into higher domestic fuel prices yet. At some point that may need to happen as the government passes those costs and then there could be an impact on the Indian consumer and potentially on consumer spending. Over the last five years, the geopolitical and macroeconomic environment has been more volatile. We keep an eye on all of it and how it will impact consumers broadly, and we will deal with the situation as it evolves,” he adds.
McNamara stated that increasing wealth, urban growth, and digital advancement are significant contributors to growth in India. “Haleon is the market leader with a 71 per cent share of therapeutic oral health, delivering double-digit growth over the last several years driven by our main brand, Sensodyne,” he notes.
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At the same time, Haleon has been concentrating on enhancing the accessibility of its products by offering popular price points like Rs.20 for Sensodyne. Lele mentioned that at present, 20 percent of Haleon’s toothpaste volume and almost half of its growth originate from this price level. The firm is also expanding additional budget-friendly formats, such as 10-rupee packs for Centrum and Eno.