FMCG major Dabur India has been hit by the prevailing political tension in Nepal, forcing the company to say on Thursday that it has actually impacted juice sales. In fact, Dabur India informed BSE that its Q3 earnings will be impacted due to lower juice sales on continuing political unrest in Nepal, causing its share price to fall by 2 per cent on Friday.
Dabur India plant at Birgunj in Nepal is currently only catering to the domestic market there as it is unable to send supplies across the border.
With the company saying juice sales are likely to dip as much as 10-15 per cent in October-November due to this, Dabur India share price is expected to remain under pressure.
Dabur India share price fell 2.05 per cent to settle at Rs 272.25 on BSE on Friday. During the day, it had lost as much as 3.54 per cent to Rs 268.10. On the NSE, Dabur India share price declined 1.86 per cent to end at Rs 271.70.
In a statement released to BSE on Thursday, the FMCG company said, “There is no transmutation in the eco-political situation in Nepal till date and the India-Nepal border continues to remain closed. We have lost some part of juice sale in October and November, 2015 and estimated juice sale during Q3 of FY 2015-16 will be lower by 10-15 per cent vs previous year.”