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Dabur Foods merges with parent company Dabur India, health & wellness are the twin themes that merged entity will focus on

Thursday, July 12, 2007

Dabur Foods has merged with Dabur India because their businesses have similar themes - health and wellness. Dabur Foods got into business 10 years ago with orange and tomato juices. Though the business is growing well and the company is worth Rs 250 crore.

Dabur Foods thinks it can extract more juice from its portfolio of health and convenience products, by merging with Dabur India, the parent company that has a range of ayurvedic fixes to make one look and feel good.

Health and wellness are the twin themes that the merged entity will focus on. However, in the past, Dabur Food hinted at roping in a strategic investor or floating an IPO. The merger has put all such speculations to rest. Instead of unlocking value by demerging the profitable foods business, Dabur has moved in the other direction.

Analysts say Dabur is betting big on foods in the long run. Especially when Dabur Foods is clocking 35% growth compared to other businesses like personal care that are growing at 14-15%. That's some food for thought.

Posted by FR at 8:15 PM  

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