Dabur to merge foods biz with FMCG
Dabur India to merge its subsidiary Dabur Foods with itself to consolidate its position in the FMCG space.
By PTI |
NEW DELHI: Homegrown FMCG major Dabur India Limited (DIL) on Wednesday said it will merge its wholly-owned subsidiary Dabur Foods Limited (DFL) with itself.
The Board of Directors of DIL approved the merger with retrospective effect from April 1, a company statement said.
"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.
He said DFL is an intrinsic part of DIL's growth strategy and has been one of the fastest growing businesses, reporting a 35 per cent CAGR for the past five years.
Through the merger, DIL is looking to extract synergies and unlock operational efficiencies for DFL sharpen focus on the high growth business of foods and beverages, and enter newer product categories in this space, it added.
"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 CEO Amit Burman said.
Duggal said through the merger, the company would be able to invest and expand more effectively due to the combined scale, profitability and global reach.
DFL, after the proposed merger, would become one of the business divisions of the Rs 2,233 crore 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 would be issued as a result of the merger, it added.
The Board of Directors of DIL approved the merger with retrospective effect from April 1, a company statement said.
"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.
He said DFL is an intrinsic part of DIL's growth strategy and has been one of the fastest growing businesses, reporting a 35 per cent CAGR for the past five years.
Through the merger, DIL is looking to extract synergies and unlock operational efficiencies for DFL sharpen focus on the high growth business of foods and beverages, and enter newer product categories in this space, it added.
"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 CEO Amit Burman said.
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Duggal said through the merger, the company would be able to invest and expand more effectively due to the combined scale, profitability and global reach.
DFL, after the proposed merger, would become one of the business divisions of the Rs 2,233 crore 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 would be issued as a result of the merger, it added.
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