According to The Hindu, Nobel Hygiene plans to expand its capacity by setting a new plant in northern India to meet the growing demand for adult and infant diapers in the country, reports The Hindu.
“We have seen the demand for adult diapers growing from zero in 2000 to approximately 10 crore pieces in 2016,” said Kamal Kumar Johari, managing director, Nobel Hygiene. “Besides, the baby diapers market is growing at 25-30% a year. So, we are planning to set up a new factory in North India, either in NCR Delhi or in Uttar Pradesh this year,” he said.
Nobel Hygiene will invest ₹25 crore in the new manufacturing unit. The company already operates six manufacturing lines with fully-automated machines at a factory in Nashik in Maharashtra. The unit manufactures adult and baby diapers, underpads and baby diaper pants. Nobel Hygiene has two brands: Friends for adult diapers and Teddyy for baby diapers.
Disposable hygiene market in India is estimated at ₹6,000 crore. The adult diapers market is estimated at ₹350 crore at MRP level while the baby segment is worth more than ₹5,500 crore. The adult diapers market is growing by 18 to 25% in the cities while in the rural areas the growth in the range of 2 to 10%. The Indian market is dominated by Procter & Gamble, Kimberly-Clark and Unicharm of Japan.
“The penetration level of diapers in India is 6% as against 35% in China. This leaves vast scope for growth,” Johari said. The company is targeting to manufacture 20 lakh pieces of diapers per day by 2019 as compared to 10 to 12 lakh pieces currently. The company exports to Middle East, Africa, Central Europe and USA. Johari declared that the company was also planning to set up a manufacturing base outside India.