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Dabur Foods to merge with parent company Dabur India

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Dabur Foods to merge with parent company Dabur India

Dabur India Ltd (DIL) has announced its plans to merge its wholly-owned subsidiary Dabur Foods Ltd (DFL) with itself. The Board of Directors of Dabur India have approved of the merger, which will be effective from April 1, 2007. After the proposed merger, Dabur Foods will become one of the business divisions of Dabur India alongside the Consumer Care Division (CCD) and Consumer Health Division (CHD). Dabur India owns 100 per cent of the outstanding shares of Dabur Foods, so no new shares will be issued as a result of the merger.

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.

Sunil Duggal, CEO, Dabur India, said, “Dabur Foods is an intrinsic part of Dabur India's growth strategy and has been one of the fastest growing businesses, reporting a 35 per cent 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.”

He added, “Through this merger, we will be able to invest and expand more effectively due to our combined scale, profitability and global reach.”

”Dabur Foods 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.


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