Why is Haleon Building a new Manufacturing site in India?

Haleon has committed £175m (US$234.4m) to construct a manufacturing facility in Madhya Pradesh, India as part of a procurement strategy designed to increase supply chain control across Asia.

The British multinational pharmaceuticals company is building the oral health production site to strengthen in-house capabilities and respond to demand fluctuations in one of its fastest-growing markets. According to Haleon, India's consumer health market could reach more than £23bn (US$30.8bn) by 2030.

The investment represents a move away from external supplier dependence. Haleon manufactures brands including Sensodyne, Panadol and Advil and aims to reach one billion consumers globally by 2030.

The company's procurement leadership has identified Asia as a priority region for manufacturing expansion, with India serving as a strategic hub for regional distribution networks.

The facility is expected to open in early 2028, with supply operations beginning in 2029. Construction timelines have been structured to align with the company's broader supply chain transformation programme, which includes modernising procurement systems and establishing direct supplier relationships across key markets.

Strategic sourcing and supplier proximity

The Madhya Pradesh site is located near several of India's technical colleges. This positioning could provide access to skilled labour and reduce recruitment costs for the company's expanding operations.

The new facility is expected to create up to 500 additional jobs, according to the company. The procurement function will establish dedicated teams for raw material sourcing, quality assurance and supplier relationship management at the new site.

The location also supports Haleon's Win as One strategy, which focuses on productivity gains and operational transformation. The facility will supply products across Asia, reducing lead times and transportation costs for regional distribution.

By manufacturing closer to end markets, Haleon's procurement teams expect to achieve cost savings of up to 15% on logistics and warehousing expenses.

"India is a key strategic market for Haleon and an important driver of our long-term growth," explains Brian McNamara, CEO of Haleon.

"This investment strengthens our local manufacturing footprint and expands our reach in one of the world's fastest-growing consumer health markets."

Vertical integration and cost reduction

The manufacturing investment includes production of lower-cost product formats designed for price-sensitive rural markets. Haleon is developing small-format toothpaste packs, including a 20-rupee (US$0.24) Sensodyne product for distribution across towns and villages.

Approximately 65% of India's population is situated in rural areas where access to dental care remains limited, according to Haleon. The company's procurement approach includes investment in last-mile delivery infrastructure to reach these underserved markets.

Haleon has increased the number of frontline delivery teams using motorbikes to transport testing kits, samples and diagnostic tools to areas without retail or pharmacy access. Mobile oral health literacy vans operate in rural communities to provide health checks and immediate product access.

The vertical integration strategy could allow Haleon to reduce production costs while maintaining control over ingredient quality and product specifications.

The company's procurement teams are also evaluating opportunities to source packaging materials and active ingredients from local Indian suppliers, which would further reduce import dependency and support the development of domestic supply chains.

Supply chain resilience planning

The facility will support Haleon's goal of reaching 300 million additional consumers in India by 2030. The company's expansion plan includes building community hubs for oral health awareness and product distribution.

Haleon's investment in local manufacturing capacity could reduce exposure to supply chain disruptions and currency fluctuations that affect imported goods. The Asia-focused supply strategy may also lower logistics expenses and improve inventory management across the region.

Procurement teams are implementing risk mitigation protocols, including dual-sourcing arrangements for critical raw materials and establishing safety stock levels to protect against supply interruptions.

"By increasing access to our trusted brands and building our capabilities on the ground, we are well-positioned to capture the significant opportunities ahead," Brian adds. "We aim to expand access to better everyday health for more than 300 million additional consumers in India. This will be key to achieving our broader ambition to reach one billion more consumers globally by 2030."

The project is expected to support long-term economic development and local supplier capabilities in the Madhya Pradesh region.