Dabur India has offloaded its entire 49 per cent stake in the
confectionery joint venture General De Confiterria to its Spanish partner Agrolimen for Rs
35 crore. Dabur''s holding will be formally transferred to the Spanish company after
approval by the Foreign Investments Promotion Board.
This is the second such disinvestment by the company
following the restructuring blueprint drawn for it by management consultants Mckinsey
& Co. Earlier, in April, the company scaled down its stake in Excelsia Foods to 40 per
cent, handing over control to in favour of Nestle SA to become a minority partner.
McKinsey had recommended that the group move out of non-core areas and instead concentrate
on ayurveda and health care products to improve profitability.
The Rs 100 crore GCI product portfolio comprises two
categories -- Boomer bubble gum and soft-filled candies, Bonkers and Donaldo.
Company officials say that Dabur India is also moving out
from the finance business following Mckinsey''s recommendations. Though lead managers were
appointed late last year, details of the sale are still awaited.
"Finance, considered a bright area two years back due
to excess liquidity with the corporates, have lost its sheen due to fast changing market
situation. These trends have died due to entry of professional finance companies,"
said a senior company official.
The confectionery business was set up in 1994 considering
the booming candy and bubble gum market.
The Spanish partner was roped in considering the highly intensive technology nature of the
confectionery market. However, the joint venture has not worked out according to the plan
as only a handful of products saw the light of the day.