Dabur India merges Balsara, announces Q3 results

Friday, January 27, 2006

 

The Board of Dabur India Limited met here today to consider the un-audited financial results of the company for the quarter and nine month period ended December 31, 2005. The Board also considered the merger of Balsara in Dabur India, as part its integration, in its meeting today.

 

Dabur Consolidated, which includes financials of Dabur India and its subsidiaries – Dabur Foods, Dabur International (and its step down subsidiaries), Dabur Nepal and Balsara – recorded a growth of 46.5 per cent in net profit, up from Rs 112.09 crore to Rs 164.22 crore, during the nine-month period ended December 31, 2005. The sales, during the same period surged by 24.3 per cent, up from Rs 1142 crore to Rs 1419.64 crore.

 

During the quarter, the consolidated business posted a growth of 37.6 per cent in its net profit, up from Rs 47.22 crore to Rs 64.94 crore, on a turnover that increased by 26 per cent from Rs 426.6 crore to Rs 537.40 crore.

“International business, Foods, and Balsara turnaround recorded significant gains on a consolidated basis. Food business, led by Real franchise, recorded a growth of 48.4 per cent while the International business (including Balsara exports), consolidated under Dabur International, recorded a growth of 40 per cent. Balsara turnaround also played a key role in driving profitability on a consolidated basis” said Sunil Duggal, CEO, Dabur India.

 

Dabur India – which includes the Consumer Care Business and Consumer Health business - posted a growth of 30 per cent in its net profit, up from Rs 106.79 crore to Rs 138.86 crore, during the nine month period. The turnover, during the same period, registered a growth of 8.5 per cent, up from Rs 955.95 crore to Rs 1036.99 crore.

 

During the third quarter, the company recorded a growth of 34.4 per cent in its net profit, up from Rs 43.13 crore to Rs 57.97 crore, on a turnover that increased by 10.3 per cent, up from Rs 367.13 crore to Rs 404.84 crore.

“Health Supplement, Digestives and Hair care businesses recorded good growth despite competitive pressures. The Consumer health business, comprising traditional Ayurvedic medicines business, posted a growth of 31.3 per cent during the nine-month period. We were able to turnaround the Chyawanprash category with aggressive marketing efforts and launch of new variant – Chyawanshakti - that got good consumer response in its initial launch phase. Our efforts in South India are gaining momentum. We would continue our efforts to aggressively drive growth in future as well”, said Mr. Duggal.

 

 

The Board also approved the merger of three Balsara companies – Besta Cosmetics, Balsara Hygiene Products and Balsara Home Products – into Dabur India. While the legal formalities for the merger are expected to be completed by September this year the merger would be effective from April 1, 2006.

 

Dabur India, last year, had acquired the entire promoter stake in three Balsara companies - 99.4 per cent in Balsara Hygiene Products; 100 per cent in Balsara Home Products; and 97.9 per cent of the shareholding in Besta Cosmetics Limited – for Rs 140 crore and these companies were absorbed as subsidiaries in Dabur India as part of integration.

“The operations of these entities have already been integrated with DIL but to derive further benefit of the acquisition by way of a more efficient corporate structure, it has now decided to legally integrate the Balsara entities with Dabur India” said P D Narang, Group Director, Dabur India.

With this decision to merge, all Balsara brands - like Promise, Babool, & Meswak in Oral Care; Odomos in mosquito repellents; Odonil, Odopic in Household products - its offices and manufacturing facilities in Silvasa, Kanpur, Baddi – will now be rolled into Dabur India.

 

ENDS

 

Corporate Communications

Dabur India Limited

PH:- 95120-3982000, 3001000 extn 2101/2547

Fax: 95120-4374935

Email:corpcomm@dabur.com