Dabur India demerges pharma business from FMCG ops

22 May 2003 02:09 Source:ICIS News

NEW DELHI (CNI)--Dabur India Ltd (DIL) has finalised the demerger of its pharmaceuticals division from its core fast moving consumer goods (FMCG) operations.

FMCG operations include healthcare and personal care products and medicines from a traditional Indian science named Ayurveda.

The demerged pharma division will be named Dabur Pharma Limited (DPL). The new company will have equity share capital of Rs142.9m ($3.0m/Euro2.6m) and will be listed on major Indian stock exchanges.

The demerger is expected to help Dabur’s pharma business to develop independently and emerge as a global player in the field of anti-cancer formulations. The company is exploring alliances with global majors to expand its operations.

The division manufactures bulk drugs as well as formulations at two plants in the country. The pharma division currently accounts for 15% of the DIL’s sales, earning net profit of Rs131.3m on total income of Rs1.87bn in its financial year to 31 March 2003.

  

By Naresh Minocha