Dabur moves a step towards demerger — Separates

pharma, FMCG businesses

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Presented by -

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Kamiya rautela

Ankita goyal

Hitesh nandwan

Shikha kaushal

Neha goel
 Dabur india-FMCG & Pharma
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Dabur India initiated its demerger in jan 2003
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Spun off its pharma segment
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New co. Named Dabur Pharma Ltd (DPL)
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Dabur India transferred assets of 214cr out of
512cr to Dabur Pharma
 Reasons for Demerger

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To provide greater focuss & growth to each
business
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To negate the -ve synergy that was persisting
between the two

It would allow investor to benchmark
performance of two entities with their respective
industry

To uplift its pharma segment
 DPL

DPL includes
-dabur research
- dabur oncology plc
- dabur's bulk and formulation business

Dabur pharma on jan 2009 changed its name to
Fresenius Kabi Oncology Ltd
 Inference

EVA of FMCG is higher than that of composite
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-ve EVA of pharma : capital not properly used
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Shows -ve synergy between the two
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FMCG: a low intensity business & pharma :
needs high capital for R&D
 DABUR : Post- Demerger

FMCG : sales growth of 12%

Per share earning of 4.32 in march 2009

Equity base of 28.6 cr


PHARMA: doubled its sales over 3yrs

Net operating profit of 13.1 cr