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Dabur Foods to merge with Dabur India Limited

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Dabur India Limited (DIL), with turnover in excess of Rs 2,233 crore, has announced plans to merge wholly owned subsidiary Dabur Foods Limited (DFL) with itself. The merger with Dabur India will extract synergies and unlock operational efficiencies for Dabur Foods. The integration is also expected to help Dabur sharpen focus on the high-growth business of foods and beverages, and enter newer product categories in this space.

Sharing his view on the merger, Amit Burman, CEO, Dabur Foods Limited, said, “DFL was floated as a subsidiary over 10 years ago and has since gained unquestioned leadership and market dominance in the fruit beverage space. With Dabur Foods now deciding to expand its presence in the health and wellness sphere, a merger with the parent company is the logical step forward.”

DFL, after the proposed merger, will become one of the business divisions of DIL alongside Consumer Care Division (CCD) and Consumer Health Division (CHD). DIL owns 100 per cent of the outstanding shares of DFL, so no new shares will be issued as a result of the merger.

“Dabur Foods is an intrinsic part of Dabur India’s growth strategy and has been one of the fastest growing businesses, reporting a 35 per cent CAGR for the past five years. We believe this merger is a unique opportunity to combine the strengths of a foods company with those of a growing and profitable FMCG business, to create an extraordinarily strong and rapidly growing global competitor in the health and wellness space,” Dabur India CEO Sunil Duggal said. Further, “Through this merger, we will be able to invest and expand more effectively due to our combined scale, profitability and global reach.”

The Board of Directors of Dabur India Ltd has approved the merger, which will be effective from April 1, 2007, and hence the quarter results will be combined for both the companies.


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