Swara Baby Products Limited plans to invest Rs. 558.47 crore to establish a new manufacturing facility at Pithampur in Dhar, Madhya Pradesh, as the hygiene products manufacturer looks to expand capacity across baby diapers, adult incontinence products and sanitary napkins.

The project includes Rs. 198.21 crore from the net proceeds of the company’s proposed initial public offering (IPO). As of May 31, 2026, Swara Baby had already deployed Rs. 159.65 crore towards the project, while Rs. 160.55 crore had been arranged through other verifiable sources.

The remaining funding is expected to come from external debt and internal accruals.

The proposed facility will add annual capacity of 1,464 million baby diapers, 252 million adult diapers and 192 million sanitary napkins. Following the expansion, the company’s total installed capacity is expected to reach 4,124 million baby diapers, 505 million adult diapers and 948 million sanitary napkins annually.

The new plant will manufacture baby and adult diapers in both pant-style and tape-style formats, covering sizes from newborn and small through XL and XXL.

Swara Baby has expanded significantly since establishing its first manufacturing line in 2018. As of March 31, 2026, the company operated 20 production lines, comprising 12 baby diaper lines, four adult incontinence and period-panty lines, and four sanitary napkin and panty-liner lines.

Its four existing manufacturing facilities are spread across 24 acres in Pithampur and Indore, with combined annual capacity of around 2,660 million baby diapers, 253 million adult diapers or period panties, and 756 million sanitary napkins and panty liners.

Total installed capacity increased from 2,491 million units in FY24 to 3,543 million units in FY26, while actual production rose from 1,588 million units to 2,299 million units over the same period.

According to the TKC Report, Swara Baby was India's largest contract manufacturer by value in the hygiene manufacturing industry in FY25, covering baby diapers, adult diapers and sanitary napkins.

The company held an estimated 37% share of India's baby diaper contract manufacturing market by value and around 36% of the adult diaper contract manufacturing market in FY25. Its contract manufacturing business grew 19% year-on-year in value during FY26.

Swara Baby said the planned investment will help it meet anticipated demand growth, strengthen relationships with domestic and international customers and achieve greater economies of scale.

The company also plans to pursue a “land-and-expand” strategy, increasing its share of outsourced production from existing customers while expanding into additional product categories. It is targeting export opportunities across the Middle East and North Africa, Asia-Pacific and other international markets.