Dabur to exit from finance business this fiscal

While the company has not yet appointed a merchant banker to enable the transaction, the company plans to divest the company in the current financial year, PD Narang, group director - corporate affairs, Dabur India told Business Standard.

"We entered the business about 10 years ago when the economy was opening up and it was fashionable for companies to dabble in financing business. We realised very soon that it was not the right business for us to be in. That is why we did not invest much in the company," he said.

The balance-sheet size of the company is about Rs 6-7 crore and most of the money is lying in the form of cash. Narang added that the company, however, would not give the Dabur brand to the buyer.

The Dabur group has also decided to offload its 50:50 joint venture with Bongrain International to manufacture cheese and other milk-based products under the 'Dabon' brandname. Dabur's stake in value terms is about Rs 13.5 crore.

"Since our joint venture partner has asked us not to divest the stake immediately, we'll sell our shares to them over a period of time," Narang said. He added that Dabur has, however, put a lid on its investment in the company.

The group had recently drawn up an action plan for the next 3-4 years for every company under the group, especially after the pharma company was demerged into a separate company.

Earlier, the group had exited from the confectionery segment and had divested its equity in joint venture with Agrolimen (now called Joyco).

The group also had a 60:40 joint venture with an Israeli company "" Osem "" to manufacture biscuits. The joint venture was called Excelsia Foods Ltd. Later, when Nestle SA bought out Osem Worldwide, its 40 per cent stake went to Nestle.

Initially, Dabur reduced its shareholding in the company to 40 per cent by selling additional 20 per cent to Nestle and later decided to exit it completely.