In keeping with the family tradition, which has ensured a smooth transition in roles amongst family members for the last five generations, the non-executive chairman’s mantle at Dabur India on Friday passed on to Mohit Burman from his cousin Amit. Mohit was hitherto the non-executive vice-chairman of the company.
The new non-executive vice chairman of the company will be Saket Burman. The appointments are for a period of five years.
The Dabur family has basically two wings and the practice is that if a member of one wing holds the chairman’s position, the vice-chairman’s slot will go to a member of the other wing. The vice-chairman later takes over as chairman.
Anand, Mohit and Gaurav are part of one wing of the family, while the other consists of, Amit, Saket, and Chetan.
Till now, Amit was the chairman and Mohit the vice-chairman. Now, Mohit takes over as chairman and Saket from the other wing takes over as vice -chairman.
In addition, to the chairman and vice-chairman, two other family members are directors on the board of the company, so at any given time four family members serve on the board. Accordingly, Amit will now be a director. The Burman family members are present in non-executive capacity on the board and do not participate in the day-to-day functioning of the company.
The Burman family is among the pioneers in forming a family council which decides on all such matters and has never seen any friction. The Brijmohan Lall Munjal family of the Hero Group also has a family council and has managed its functioning without any family squabbles.
Dabur India posted a flat year-on-year growth in its consolidated net profit to Rs 440 crore for the first quarter ended June 30, 2022.
The consolidated revenue from operations increased 8.1% y-o-y to Rs 2,822 crore with an underlying volume growth of 5% in the India FMCG business. The June quarter revenue growth, at 10.3% on constant currency basis, came on a high base of 32% in the same quarter last year.
The Ebitda (earnings before interest, tax, depreciation and amortisation) declined 1.4% y-o-y to Rs 544 crore, while the operating margins fell 180 basis points y-o-y to 19.3%.