Nivea to set up first plant, R&D facility in India at Sanand, Gujarat

Ahmedabad, 23 June, 2014

Global skin care giant Nivea on Monday announced it would set up its first 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 a research and development (R&D) centre at the Sanand-based factory, which will focus on innovations for Indian consumers as well as other markets, said Nivea India managing director Rakshit Hargave on Monday during the factory’s ground-breaking ceremony.

“The GIDC (Gujarat Industrial Development Corporation) allotted us 72,000 sq. metres of land at Sanand to set up our first manufacturing unit as well as R&D centre in India. The plant will be operational by 31 March 2015 with the initial production capacity of more than 50 million units of skin and personal care products,” he said.

Hargrave did not share the quantum of investment for the plant. He was accompanied by several top Beiersdorf executives, including Reinhard Pollath, chairman of the supervisory board, and executive board member Stefan De Loecker.

Asked why they selected Gujarat for their first plant in India, Loecker said: “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.”

Hargrave added that Nivea imports almost 60% of their products in India and that they hope to reduce their reliance on imports with the new facility, as well as offer more affordable products in India. Nivea’s product range in India includes bathcare, body care, deodrants, face care, men’s care and lip care products.