New Delhi, March 28
DABUR India Ltd on Monday said it would be making investments of about Rs 40 crore across its major subsidiaries including Dabur Foods, Balsara Home Products and Dabur Nepal to meet their expansion and operational needs. The company's board has approved the fresh investments.
"The strategic intent is to further strengthen our subsidiaries and equip them better to meet the growing demands of business by providing them with adequate capital for building fresh capacities and consolidation of operations," said Mr P.D. Narang, Group Director, Dabur India.
Dabur Foods Ltd, a 100 per cent subsidiary of Dabur India, would raise money by issuing additional 1-crore equity shares of Rs 10 each at par to Dabur India to fund its expansion needs. With this, the company's equity capital would double from Rs 10 crore to Rs 20 crore.
"Dabur Foods has been recording impressive growth in its juice business during the last few years. The funds would be used to meet the growing need for juices and food products by expanding and strengthening its manufacturing capacities across the country," said Mr Narang.
The company proposes to acquire a fully operational beverage processing and packaging facility in Jaipur that would be used to process and pack its range of juices being sold in the country. The board has also approved infusion of additional capital of Rs 27.66 crore in Balsara Home Products Ltd, by way of equity expansion.
"Balsara had some high cost debt which is an unnecessary burden on the company. The Rs 27.66 crore would be used mainly to retire high cost debt of Balsara Home Products and also meet some the operational needs of the company.
The price being paid to acquire these additional shares for Balsara Home Products is the same that was paid to the promoters of Balsara to acquire the company," he said.
Meanwhile, in a bid to consolidate its international operations, Dabur India has also decided to increase its stake in Dabur Nepal Pvt Ltd, a joint venture between Dabur India and local Nepalese partner, to 97.5 per cent from 80 per cent.
The board also accepted the resignation of Dr Anand Burman, who is the executive Vice-Chairman and whole-time Director on the board of Dabur India, from an executive role. He will, however, continue as the non-executive Director and Vice-Chairman of Dabur India.