New Delhi, Jan. 15: Dabur India is planning to demerge its pharmaceutical business, which contributes 14 per cent to its turnover. The company has informed the Bombay Stock Exchange that the demerger proposal will be discussed at a meeting of the board of directors on January 29.
Dabur has chalked out this proposal as it wants to put greater emphasis on the growing pharmaceutical business, official sources told The Telegraph.
The firmís 10-member board, with V. C. Burman as chairman, will consider the unaudited financial results of the company for the third quarter (September-December 2002).
Fast moving consumer goods (FMCG) are the mainstay of Dabur India, accounting for over 76 per cent of its sales. The FMCG business is further divided into family products, healthcare and FMCG exports. The ayurvedic specialities business unit of Dabur contributes about 7 per cent to its turnover. Other smaller businesses contribute the remaining 3 per cent.
Daburís pharmaceutical business grew 7.2 per cent in 2001-02. Domestic branded formulations ó one of the two subdivisions of this business unit ó recorded a 10.3 per cent growth during this period. The other sub-division of the pharma business unit comprises bulk drugs and formulation exports.
Dabur Oncology, which is also a pharmaceutical-related business of the group, is incorporated as a 100 per cent subsidiary of Dabur India.