Dabur Foods to merge with Dabur India

New Delhi, July 11, 2007: Dabur India Limited (DIL), a leading Indian FMCG company with turnover in excess of Rs 2,233 crore, today announced plans to merge its wholly owned subsidiary Dabur Foods Limited (DFL) with itself. The Board of Directors of Dabur India Ltd today approved the merger, which will be effective from April 1, 2007. The merger with Dabur India would extract synergies and unlock operational efficiencies for Dabur Foods. The integration will also help Dabur sharpen focus on the high growth business of foods and beverages, and enter newer product categories in this space. "Dabur Foods is an intrinsic part of Dabur India's growth strategy and has been one of the fastest growing businesses, reporting a 35% CAGR for the past five years. We believe this merger is a unique opportunity to combine the strengths of a foods company with those of a growing and profitable FMCG business to create an extraordinarily strong and rapidly growing global competitor in the Health and Wellness space," Dabur India CEO Mr. Sunil Duggal said. "Through this merger, we will be able to invest and expand more effectively due to our combined scale, profitability and global reach." DFL, after the proposed merger, will become one of the business divisions of DIL alongside Consumer Care Division (CCD) and Consumer Health Division (CHD). DIL owns 100% of the outstanding shares of DFL, so no new shares will be issued as a result of the merger. "DFL was floated as a subsidiary over 10 years ago and has since gained unquestioned leadership and market dominance in the fruit beverage space. With Dabur Foods now deciding to expand its presence in the Health and Wellness sphere, a merger with the parent company is the logical step forward," said Mr. Amit Burman, CEO, Dabur Foods Ltd. About Dabur Foods

Dabur Foods is an expert in marketing & distribution of food & beverage products, and its brands retail across approx. 100,000 retail outlets & 4,000 Food-Services accounts, selling approximately 4.5 million packs every month. DFL had pioneered the packed fruit juices segment in India, establishing Réal as a premium brand that commands over 51% share of the fruit juices and nectars market today. Dabur Foods also has a range of 100% Juices with 'No added sugar' under the Réal Activ brand, which is targeted at health-conscious young adults. DFL recently expanded its horizon to enter the highly competitive fruit drinks market with Réal Twist. Testimony to DFL's brands has come from various quarters. Réal won the 'Platinum' award in the 9th "Reader's Digest Trusted Brands Survey" in the 'Juice' category, in 2006 and again a 'Gold' award in 2007. The flagship brand Réal is also a 'Superbrand'. About Dabur India

Dabur India Limited is one of India's leading FMCG companies with a consolidated turnover exceeding Rs 2,233 crore. Building on a legacy of quality and experience for over 120 years, Dabur today is India's most trusted name and the world's largest Ayurvedic and Natural Health Care Company. The largest Indian Personal Care and Health Care Company, Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. Dabur India's FMCG portfolio today includes five flagship brands with distinct brand identities -- Dabur as the master brand for natural healthcare products, Vatika for premium personal care, Hajmola for digestives, Réal for fruit-based drinks and Anmol for affordable personal care products.