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TS is ideal location for plants like ours: J&J MD
It is a proud moment for Johnson & Johnson because we are building our largest facility in the state of Telangana. We have been receiving good support from the Telangana government till now.
Johnson & Johnson, the global leader in baby care products, has zeroed in on a 47-acre site near Kothur village in Mahabubnagar district for its largest plant in the country, Telangana Chief Minister K Chandrasekhar Rao laid the foundation for the Rs 400-crore facility recently. “We wanted to have a geographical location which is closer to our consumers. We were also looking for a state which has good infrastructure and supportive industrial policy. We explored many options but we settled down in Telangana because it has all the qualities we were searching for,” Vikas Srivastava, Managing Director-India, Johnson & Johnson Limited, tells P Madhusudhan Reddy in an interview
Tell us about your new plant in Telangana…
It is a proud moment for Johnson & Johnson because we are building our largest facility in the state of Telangana. We have been receiving good support from the Telangana government till now. The Chief Minister also promised all the possible support in future too. Our new plant in Telangana will commence production from 2016. We have 47 acres of land here and part of that will be utilised for the phase one which will generate 1,500 direct and indirect jobs. The incentives in the industrial policy that are applicable to large projects will also be applicable for our plant.
Why did you choose Telangana?
We wanted to have a geographical location which is closer to our consumers. Besides, we were also looking for a State which has good infrastructure and supports industries with good industrial policy. We explored many options but zeroed in on Telangana because it has all the qualities we were looking for. We are quite pleased with the progress we have made so far. We look forward to a productive partnership with the Telangana government.
Since you are planning to invest Rs 400 crore in the first phase, what will be the total investment at the location?
At this stage, our focus will be on the phase one. Once we complete the phase one, we will explore the possibility of investing more. Of course, it will take time. There could be one or two more phases later in the decade. At present, we have personal hygiene as well as consumer products in the area of baby care in our product portfolio. In the phase one, we will manufacture baby care products besides clean & clear face wash offerings here. The annual installed capacity will be 18,000 tonnes. As you are aware, J&J has been trusted by generations of mothers for the quality of products it offers.
Do you have any plans to source raw materials for the new plant from Telangana?
We may explore such opportunities as construction of the plant progresses. However, we can’t give any clarity on this at this point of time.
Are there any plans to export from the plant?
At this stage, the plant will primarily cater to the domestic market. All the segments we are in are registering healthy growth. At present, we are ramping up our production capabilities to meet the increasing demand for our products by 2020 and beyond. So, the plant will largely serve the domestic market. However, we do export from the existing plants to overseas markets such as Sri Lanka and Bangladesh.
What is your total production capacity India? What is the significance of this plant in Telangana?
We already have plants into Maharashtra and other locations in the country. We have a combination of in-house and external manufacturing facilities. That means we will outsource some of our manufacturing needs to others. Our business in South India is clocking a healthy growth and contributes over 30 per cent to our overall revenues in the country. By having a facility in South of India, we want to cater to our growing business in this part of the country. As our business grows, we want to be closer to our markets. That’s the reason why we have chosen to be in Telangana.
How much market share does J&J enjoys in personal hygiene and baby care segments now?
Baby care category is the largest one in our consumer business segment. We are the No 1 player in the country. We are also very strong player in personal hygiene segment with our popular brands like Stayfree. In addition, we also have presence in facial skincare, oral care markets. In the wound care, we have Band Aid range.
Are you planning to roll out any new products in India?
Johnson & Johnson always explores the possibility of launching new products in the areas where it operates in. We will definitely go ahead and launch new products if there is any gap in the product range. The new plant is equipped with latest machinery. So, it will have capabilities to produce new products on several platforms.
