Dabur India Case: Several lawsuits have been filed in the US and Canada against three subsidiary companies of domestic FMCG major Dabur India. The company has faced serious allegations that their hair-relaxer products may cause uterine cancer and other related health problems. Giving this information in the stock market, Dabur said that its three subsidiaries Namaste Laboratories LLC, Dermoviva Skin Essentials Inc and Dabur International Limited are facing cases. According to the filing, some consumers in the hair relaxer product industry have alleged that hair relaxer products sold or manufactured contain certain chemicals that have caused ovarian cancer, uterine cancer and other health issues. The company said there are around 5,400 cases in the multi-district litigation, in which Namaste, Dermoviva and DINTL along with some other industry companies have been named as defendants. According to the latest report, Dabur India has 27 subsidiaries that contributed 26.60 percent to the company’s integrated operating income in the financial year 2022-23.
Share fell by 1.40 percent
After the news of the case against Dabur’s subsidiaries, the company’s shares fell sharply in the market. At 10.30 am, the company’s shares were trading at the level of Rs 526.55 with a decline of 1.40 percent. Whereas, at 11.50 the company’s shares fell by around one and a half percent. However, the Indian stock market had broken down in pre-opening this morning. At 11.50 pm, it was trading at 65,766, down 110 points. On Thursday, Gift Nifty is trading down by 100 points i.e. more than half a percent. At the same time, other markets of Asia have also slipped below one percent. The American market also closed down due to the rise in bond yields. Earlier on Wednesday, there was a recession in the Indian stock market.
Dabur had received GST notice of Rs 321 crore
Dabur, which makes daily use items like oil and soap, has received a notice to pay Goods and Services Tax (GST) of Rs 320.60 crore. Dabur India said in a communication to the stock market on Tuesday that the company will challenge the case on merits with the concerned authority. The company said that Dabur has received information about tax liability under Section 74(5) of the Central GST (CGST) Act, 2017. In this, it has been advised to pay Rs 320.60 crore as GST along with interest and penalty. If this is not done, a show cause notice will be issued. However, Dabur has made it clear that the demand for GST will not have any impact on the financial, operational or other activities of the company. According to the company the impact will be limited to the final tax liability.
What is Dabur India?
Dabur India is an Indian manufacturer of ayurvedic medicines, natural products and personal care products. This company was established in 1884 and produces various Ayurvedic medicines in India. Dabur India’s products may include herbal shampoos, oils, creams, skin care products, wood waxes, massage oils and hair care products. These products are based on natural and Ayurvedic ingredients which are used to help in personal care. The company’s headquarters is located in New Delhi, India and it markets its products across the world. Dabur India has made its presence felt in various countries and is a leading producer of reliability natural and ayurvedic products.