The Hindu Business Line : Health supplements boost Dabur net profit 34 pc

"We were able to turn around the Chyawanprash category with aggressive marketing efforts and launch of new variant - Chyawanshakti. Our efforts in South India are gaining momentum."

New Delhi , Jan. 27

FMCG major Dabur India Ltd has recorded a 34.40 per cent rise in net profit at Rs 57.97 crore for the quarter ended December 31, 2005, compared to Rs 43.13 crore for the corresponding period in 2004-05.

The company's turnover increased by 10.3 per cent to Rs 404.84 crore in the third quarter from Rs 367.13 crore in the corresponding period last year.

"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," said Mr Sunil Duggal, CEO, Dabur India.

"We were able to turn around the Chyawanprash category with aggressive marketing efforts and launch of new variant - Chyawanshakti. Our efforts in South India are gaining momentum," he added.

Meanwhile, Dabur consolidated, that includes financials of Dabur India, Dabur Foods, Dabur International, Dabur Nepal and Balsara, recorded a growth of 37.6 per cent in net profit at Rs 64.94 crore in the third quarter of the current fiscal against Rs 47.22 crore in the corresponding period in the previous fiscal.

"Food business, led by Real franchise, recorded a growth of 48.4 per cent, while the international business recorded a growth of 40 per cent. Balsara turnaround also played a key role in driving profitability on a consolidated basis,'' Mr Duggal said.

The company's board on Friday also approved the merger of three Balsara companies — Besta Cosmetics Ltd, Balsara Hygiene Products Ltd and Balsara Home Products Ltd — into Dabur India.

While the legal formalities for the merger would be completed by September, the merger will become effective from April 1, 2006, a company release said.

``The operations of these entities have already been integrated with Dabur India, but to receive further benefit of the acquisition by way of a more efficient corporate structure, it has now been decided to legally integrate the Balsara entities with Dabur India,'' Dabur India Group Director, Mr P.D. Narang said, of the Rs 140-crore merger.

The board also said it has issued bonus shares in the ratio of 1:1 to the existing shareholders.