Dabur Shares Decline 4% Amid Engagement with US FDA Over Silvassa Unit Observations
Dabur India Shares Decline 4% Amid USFDA Observations
Dabur India's shares took a hit on Monday, declining more than 4% despite the company's assurance that it is engaging with the US Food and Drug Administration (USFDA) over observations made at its Silvassa manufacturing facility. The observations, which relate to a small part of the manufacturing plant at Silvassa in Dadra and Nagar Haveli, contribute insignificantly to the company's revenue.
According to a filing with the exchange, Dabur is actively engaged with the USFDA on the audit findings and has prepared a corrective and preventive action plan to address the concerns raised. The company has shared the action plan with the USFDA and is providing regular updates on the progress. Dabur continues to implement strong controls to ensure that its quality systems are not compromised and remains committed to maintaining high standards of product quality across its manufacturing operations.
The company has stated that there is no impact on its financials, operations, or any other business activities due to the observations. The USFDA identified data integrity, manufacturing, and maintenance-related lapses at one of Dabur India's plants following an inspection conducted earlier this year. The observations were issued after an inspection of the company's facility in Dadra and Nagar Haveli in January.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
| Observation | Description |
|---|---|
| Data Integrity | Certain critical manufacturing records were falsified to conceal that equipment designated for specific products had been used for multiple other products. |
| Manufacturing | Some units at the facility were found to pose risks of microbiological contamination. |
Shares of Dabur India settled more than 4% higher at Rs 425.05 per share on the NSE.
Investor Takeaway
Dabur India's shares declined due to engagement with US FDA over observations at its Silvassa unit, but the unit contributes insignificant revenue.
More in Market
Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Indian Stocks to Watch: BHEL, Agarwal Industrial, JBM Auto, Rajesh Exports, Indian Energy Exchange, Lenskart Solutions in Market Focus on June 4.
