The Hindu Business Line : `Book' problem may keep Dhara off shelves

The GCMMF, the sole sales agent of Dhara, which was directly under the National Dairy Development Board (NDDB) umbrella till it was spun off as a separate entity in 2000-01, says it has had no problem with the auditors of Dhara ever since the brand was floated in 1989.

AHMEDABAD, May 11

THE future of the Rs 300-odd crore Dhara edible oil appears to hang in balance even as the two principals, Dhara Vegetable Oils and Foods Company Ltd (DOFCO) and the Gujarat Co-operative Milk Marketing Federation (GCMMF), are embroiled in the nitty-gritty of keeping accounts.

The end result is that Dhara, one of the popular brands of edible oils, may no longer be available in many parts of the country. The official version is that Dhara sales have been disrupted ever since the truckers went on strike, but the reality is that Dhara is no longer available with many stockists and distributors of GCMMF. While there is some cursory talk of moving Dhara by railway rakes, the fact is that Dhara is no longer a preferred commodity in the vast GCMMF distribution network.

The trouble began once DOFCO's auditors insisted on some documents such as vouchers pertaining to the sales and distribution of Dhara that were requisitioned for the first time in 13 years, it is understood. Both the parties hardened their stand once media reports began appearing where GCMMF was charged of `cooking books' allegedly by Dhara auditors.

"Even as some competition with NDDB became a fact of life with the active promotion of the Mother Dairy brand, the Dhara sales continued unaffected. This was perhaps because GCMMF was marketing Dhara at a margin of 1.75 per cent, a rate that is not easy to match by many others. And we will not allow it to be handed over on a platter by way of detailed documents of sales, expenditure and stock records that the DOFCO auditors have demanded from us," a senior officer said.

GCMMF is convinced that DOFCO is trying to hijack its sales and distribution network by way of the auditors' demands and has stated that it will not cave in to such pressure tactics. Instead, the co-operative marketing giant for whom Dhara constitutes only about 10 per cent of its sales, has demanded that DOFCO issue a rejoinder on the report that accused it of having cooked books.

Clearly, both DOFCO and GCMMF seem to have their task cut out as they may be required to sort out all outstanding issues amicably as, otherwise, this altercation will take a heavy toll on Dhara.

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