Financial Daily from THE HINDU group of publications
Friday, Jul 12, 2002
Financial Daily from THE HINDU group of publications Friday, Jul 12, 2002 |
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Corporate
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Restructuring Dabur moves a step towards demerger — Separates pharma, FMCG businesses Our Bureau
NEW DELHI, July 11 AS a precursor to hiving off the company's pharma business into a separate entity, Dabur India Ltd today announced the "virtual demerger" of its FMCG business from its pharma business. "Dabur India has restructured its Rs 162.9-crore pharma business and has virtually separated it from its FMCG business," a company statement issued here today informed. This restructuring was a prelude to spinning off the Dabur's pharma business into a separate outfit at a later date, the note added. Dabur India's Chairman Mr V.C. Burman had indicated this to Business Line at an interview earlier this year : "Dabur would not be averse to spinning off the pharma division into an independent company, provided the business achieves a critical mass." The restructuring of Dabur's pharma business plays itself out in that it would continue under the ambit of Dabur India, but would function as a separate business unit internally, under a different head and functional heads. It would also maintain separate books of accounts, the note informed. The pharma business would be led by the Pharma Management Committee headed by Dr Anand Burman, Vice-Chairman, Dabur India. The committee would determine operational policies and conduct business performance reviews to ensure adequate internal control and standard operating procedures in the business. The decision is based on the recommendations of Accenture that suggested separation of Dabur's pharma and FMCG businesses to provide greater focus and growth to each business under separate business heads. The businesses that have been brought under Dabur Pharmaceuticals include the pharma-related activities done by Dabur Research Foundation, Dabur Oncology Plc and Dabur's bulk and formulations businesses. A `strategy group' has been set up under Dr Anand Burman, to lead the business activities of Dabur Pharmaceuticals. The strategy group comprises representatives from Dabur India and Dabur Oncology Plc and would be responsible for the formulation of strategy, for the short and long term, for the organisation at a global level. Dabur's pharma business registered a 7.2 per cent growth, clocking a sales turnover of Rs 162.9 crore for the fiscal ended March 2002.
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