Mumbai: Delhi-based publicly listed health and consumer products company Dabur India Ltd plans to build information technology, or IT, parks and enter the business of IT products and services.
In its July annual general meeting, or AGM, the company passed a resolution that allowed it to “set up, establish, participate, build, lease, sell, operate and maintain software/information technology parks in India or abroad”, and also “engage in all activities relating to information technology products and IT-enabled services including, but not limited to, development, manufacture, design, repair, enhance, assemble, deal, buy, sell, licence, distribute, import, export software/hardware along with the system and accessories.”
Uncharted territory: The Dabur India headquarters at Ghaziabad, Uttar Pradesh. The firm is yet to decide on investing in the infotech sector. (Photograph by Rajeev Dabral / MINT)
Any company that wishes to enter a business other than the one it was set up for has to have this approved at its annual general meeting which is attended by most shareholders.
Dabur India group director P.D. Narang, said in an email response that the resolution was passed with reference to developing one acre of spare land near Mumbai that Dabur acquired by virtue of the merger of the Balsara group of companies with Dabur India.
“This plot is best suited to develop an IT park and so Dabur India plans to join hands with local developers to develop this property into an IT Park in order to realize the optimal commercial value for this property in future.”
He declined to comment on investment in this project, saying “it’s too early”.
A Mumbai-based analyst said Dabur has taken a decision of setting up IT parks covering broader aspects of software services possibilities.
“The business model of Dabur in IT parks is yet to be finalized. Going by the resolution, it will be a purely real estate development project or special economic zone proposal in lines with other real estate developers. The profitability and the timings of entry into this business can only be ascertained after the finalisation of business model,” the analyst, who does not want to be named, said.
Shares of Dabur India ended down 0.06% at Rs89.95 on the Bombay Stock Exchange.
Dabur India closed the year ending March with revenue of Rs2,395 crore and a net profit of Rs332.8 crore. In the latest quarter ending June, it earned a revenue of Rs616 crore and a net profit of Rs71 crore.