Dabur which is famous for its consumer goods in India is being sued in the federal and state courts in the United States and Canada. The company’s three subsidiaries are being sued; namely Namaste Laboratories, Dermoviva Skin Essentials and Dabur International have been named defendants in 5,400 cases.
The products sold by this company have been said to cause ovarian and uterine cancer as well as other health issues. The main bone of contention are hair relaxing products that contain chemicals that allegedly cause cancer and other health problems.
Dabur India issued a statement denying liability and have retained counsel to defend them in the lawsuits saying that the allegations are unsubstantiated and the study is incomplete.
Incidentally Dabur shares also fell by 2.25% yesterday.
Dabur India has 27 subsidiary companies which contributed to 26.6% of the consolidated revenue from operations in FY2022-23. The company has 8 international manufacturing locations.
The company which is well known for products like Vatika Shampoo and Chawanprash said it could not determine the financial implications of the settlement verdict. Dabur International sells over-the-counter hair straightener and relaxer products under various brand names. These products are said to contain formaldehyde which is linked to hormone-related cancers and can cause long term health problems.
Dabur draws about 26% of its business from the international segment, but within that, Namaste’s contribution is still in single digits,” said Shirish Pardeshi, research analyst at Centrum Broking Ltd.
The company manufactures Ayurvedic medicine and natural products and is said to be one of the fastest moving consumer goods products. It derives 60% of its revenue from the consumer care segment, 11% from food products and the remaining amount from the international market.
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