Dabur to consider de-merger of pharmaceutical business

Thursday, 16 January 2003, 20:30 IST
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NEW DELHI: Indian consumer and herbal products major Dabur India Ltd. Wednesday said its board would meet on January 29 to consider de-merger of the pharmaceutical division to provide "greater business focus." In a statement issued to the Bombay Stock Exchange, New Delhi-based Dabur said the board of directors would consider various options of restructuring including "possible de-merger of pharmaceutical business." Dabur made its pharmaceutical division a separate business unit, taking it out of the fast moving consumer goods segment, in July last year as a prelude to spinning it off into a new company as advised by consulting firm Accenture. Analysts say the proposal to float a new company for pharmaceutical activities stems from the need to make the division more competitive in view of the upcoming World Trade Organisation regime. Company sources say Dabur is working out a strategic plan for global as well as domestic positioning of the proposed pharmaceutical company infusing the Accenture recommendations to enhance market reach and boost revenue growth. The pharmaceutical business of Dabur, which has turned some of the nation's ancient herbal remedies into big-selling consumer brands, contributed 14 percent of total revenue in the past fiscal year.
Source: IANS
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