Nilesh Hargovan, CEO of L’il Masters Diapers, talks to KZN INVEST about construction of their new plant in Dube TradeZone 2.
Diaper manufacturer L’il Masters Diapers is one of the first two investors to put down roots in Dube TradeZone 2. Construction of its new manufacturing plant is about to commence and expected to be completed by the end of the year. This will increase production by 10-million diapers a month in Durban and increase the company’s local staff from 30 to 100.
Speaking after receiving the DTP’s CEO Award in February this year, L’il Masters Diapers Business Development Manager and CEO, Nilesh Hargovan, said the company was producing diapers at its existing three factories in Johannesburg, Vereeniging and the Dube TradeZone 1.
The latter was commissioned in 2019. This 3000m² factory which runs one diaper line has enabled the Gauteng-based manufacturer to not only penetrate the KZN market but grow production for export at more than 15% year on year. The new facility will more than double its current footprint to 7 000m² and add two more lines.
Over the past three years, L’il Masters Diapers has captured more than 30% of the South African diaper market. It has not only carved a niche in the local chain store market with its own brand, but also captured a significant portion of the private label market.
The decision to expand the Durban operation comes on the back of the success of its first factory which recorded year-on-year export growth of more than 15%.
L’il Masters Diapers anticipates further annual growth of 15% in South Africa and in Botswana, Namibia, Mozambique, Zimbabwe, Eswatini, Lesotho and Madagascar with plans to expand into Nigeria and Malawi.
The company recently acquired Infinity Care, a manufacturer of adult nappies, expanding its product range to seven baby diaper lines, one adult diaper line, one baby pants line, one sanitary pads line and three wet wipes lines.
Hargovan said DTP was chosen over other Durban locations because of convenient positioning close to the Durban harbour and good road transport thus shortening the import-export supply chain.
The Gauteng business started in 2002 as a baby accessories manufacturer. An opportunity to produce an affordable alternative to premier diaper brands saw the company fill a growing gap in the market.
While the majority of the components are imported, Hargovan said the company was open to localisation if the supplier matched the input quality at a better cost.