Dabur India to merge with Dabur Foods

Dabur India Limited (DIL), a leading Indian FMCG company with turnover in excess of Rs22.33bn, on Wednesday announced plans to merge its wholly owned subsidiary Dabur Foods Limited (DFL) with itself. The Board of Directors of Dabur India Ltd on Wednesday approved the merger, which will be effective from April 1, 2007. The merger with Dabur India would extract synergies and unlock operational efficiencies for Dabur Foods. The integration will also help Dabur sharpen focus on the high growth business of foods and beverages, and enter newer product categories in this space. �Dabur Foods is an intrinsic part of Dabur India�s growth strategy and has been one of the fastest growing businesses, reporting a 35% 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. �Through this merger, we will be able to invest and expand more effectively due to our combined scale, profitability and global reach� he said. 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% of the outstanding shares of DFL, so no new shares will be issued as a result of the merger. �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,� said Amit Burman, CEO, Dabur Foods Ltd.