• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Sindhu J. Bhattacharya

New Delhi , April 28

DABUR India Ltd (DIL) is "open" to selling its 35 per cent equity stake in the loss-making joint venture company Dabon International Pvt Ltd. Its partner, Bongrain of France, holds the remaining equity in the five-year-old venture.

The Group Director, Mr P.D. Narang, told Business Line, "We have identified cheese and other dairy products as a non-core business for DIL and ideally we need not be present (in the joint venture). We are not investing in it and if Bongrain wants, we are willing to sell off our stake in this venture."

He said when the partnership was initially formed, each party held 50 per cent stake, but DIL's stake has been diluted over the years because it has refrained from making fresh investments, whereas Bongrain has been investing in new products, technology and business expansion.

In fact, the DIL Chairman, Mr V.C. Burman, has said in notes attached to the results for 2004-05, which was declared on Thursday, that "the company's (DIL) investment in the joint venture Dabon International Pvt Ltd has not been accounted for... as the same is being held for disposal in the near future."

Meanwhile, acknowledging that Dabon was still making losses, Mr Narang said this company was still in the investment phase, and in the process of expanding its product portfolio. "The company was already selling cheese spread and cheese cubes under brand name Le Bon. Now, paneer has been added to the product portfolio. This business has good potential," he said.

Till date, Dabur India has invested Rs 13.5 crore in Dabon. Mr Narang said this partnership was forged at the time DIL was diversifying into several other product segments as well, including confectionery and biscuits. It exited the biscuits joint venture with Nestle SA (called Excelsia) in 1999, and the confectionery joint venture with Spanish company Agrolimen, in 1998.

After exiting these joint ventures, Dabur India has forged new ones only through Dabur International, a wholly-owned subsidiary meant for international operations. At present, it holds majority stakes in African Consumer Care Ltd, Nigeria, and Asian Consumer Care Pvt Ltd, Bangladesh.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Dabur India `open' to exiting Dabon

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line