Dabur moves a step towards demerger Separates pharma, FMCG businessesPresented by -

Kamiya rautela Ankita goyalHitesh nandwanaShikha kaushalNeha goel

Dabur india-FMCG & PharmaDabur India initiated its demerger in jan 2003Spun off its pharma segmentNew co. Named Dabur Pharma Ltd (DPL)Dabur India transferred assets of 214cr out of 512cr to Dabur Pharma

Reasons for Demerger

To provide greater focuss & growth to each businessTo negate the -ve synergy that was persisting between the twoIt would allow investor to benchmark performance of two entities with their respective industryTo uplift its pharma segment

DPLDPL includes-dabur research- dabur oncology plc- dabur's bulk and formulation businessDabur pharma on jan 2009 changed its name to Fresenius Kabi Oncology Ltd

InferenceEVA of FMCG is higher than that of composite-ve EVA of pharma : capital not properly usedShows -ve synergy between the twoFMCG: a low intensity business & pharma : needs high capital for R&D

DABUR : Post- DemergerFMCG : sales growth of 12%Per share earning of 4.32 in march 2009Equity base of 28.6 cr

PHARMA: doubled its sales over 3yrsNet operating profit of 13.1 cr