In a strategic move, Haleon said it will invest about ₹2,000 crore (£175 million) to set up its first manufacturing facility in India, which is one of its fastest growing markets. The company is setting up a modern greenfield site at Pithampur, focused on oral care, which is expected to get operational by 2029-30. The plant will not only serve India, but also export products to other Asian markets over time.
Brian McNamara, Chief Executive Officer, Haleon said, “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.”
The company’s portfolio includes Sensodyne, Parodontax, Pronamel, Centrum, Eno, Otrivin, Iodex and Crocin. India is the second largest market for its oral care brand Sensodyne globally.
Kedar Lele, CEO India and President, Haleon ISC added, “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 per cent 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 noted.
Asked about the impact of the West Asia conflict on consumer sentiment, McNamara said the company’s investment decisions are based on the medium and long-term growth prospects. “In India, global 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 added.
McNamara said that rising affluence, urbanisation and digital acceleration are among key growth drivers 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 noted.
Asked about inorganic growth opportunities, McNamara said, “We want to pursue inorganic growth through bolt-on acquisitions. Our priority is higher-growth categories and higher-growth markets like India. If the right opportunity arises, we are open to invest in inorganic growth. Obviously, it has to make strategic sense for the business, have a willing seller, and come at the right valuation.”
Meanwhile, Haleon has also been sharply focusing on expanding accessibility of its products through popular price points such as ₹20 for Sensodyne. Lele said currently 20 per cent of Haleon’s toothpaste volume and close to half of its growth comes from this price point. The company is also scaling up other affordable formats, including 10-rupee packs for Centrum and Eno.