Driven by its oral care business, the company achieved double-digit revenue growth in the Indian market last year.
Haleon (stock code: HLN, share price down 0.74%), the parent company of Sensodyne toothpaste, will invest approximately £175 million (equivalent to $233.5 million) to build its first production facility in India, further solidifying its footprint in emerging markets.
The company disclosed that construction on the new plant, located in the central Indian state of Madhya Pradesh and focused on oral care products, will officially commence on Monday. The project is expected to create around 500 jobs. This follows the company's prior factory investment in Shanghai.
In an interview, Haleon CEO Brian McNamara stated that this investment in India represents the largest capital expenditure for a production site by the company, which was spun off from the pharmaceutical group GlaxoSmithKline in 2022.
McNamara noted, "In the past, we were more focused on optimizing our supply chain, such as closing older facilities, rather than building new ones."
He added, however, that the current period presents a window for expansion: "We are now clearly entering a significant investment cycle."
The executive from the British consumer health company also mentioned plans to enrich its product portfolio through acquisitions, deepening its presence in high-growth countries like India, where the prospects for the consumer health sector are particularly promising.
Aligning with strategies of its peers, Haleon is persistently increasing its expansion into emerging markets. As household budgets come under pressure in Europe and the US, consumers are increasingly turning to more affordable private-label products. Meanwhile, companies like Reckitt Benckiser, maker of Mucinex, and Unilever, maker of Dove soap, have relied on sales in emerging markets to support their growth.
Haleon's portfolio includes products such as Panadol (paracetamol) tablets and Centrum vitamins, with India being a key market where it is experiencing leading growth rates. Last year, driven by the performance of its oral care product line, the company recorded double-digit revenue growth in the region.
McNamara indicated that the experience gained from executing the India plant project will serve as a reference for development strategies in other emerging markets, such as Latin America, the Middle East, and Africa.
"We have a comprehensive overarching strategy for emerging markets, and India is the spearhead of this deployment," he said.
Despite soft sales in respiratory and digestive health products, partly due to a milder flu season in Europe, the company's oral care range helped offset pressure on those business segments.
Additional Details
This facility represents Haleon's first greenfield production project. Products manufactured at the plant will be exported to approximately 35 countries and regions globally, including Southeast Asia, Japan, South Korea, the Middle East, and Australia.
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