|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||498.75 - 509.80|
|52-week range||386.05 - 528.00|
|Beta (5Y monthly)||0.33|
|PE ratio (TTM)||63.32|
|Earnings date||03 Nov 2020|
|Forward dividend & yield||3.20 (0.64%)|
|Ex-dividend date||13 Aug 2020|
|1y target est||441.78|
(Bloomberg) -- When the pandemic hit, Gaurav Burman knew he had to move fast.Burman, 48, runs his family office, which oversees about $1.5 billion in assets. The firm is the controlling shareholder of Dabur India Ltd., one of the nation’s largest consumer-goods companies, which Burman’s great-great-grandfather founded in 1884. The family is worth an estimated $9.8 billion, according to the Bloomberg Billionaires Index.“We introduced a number of Covid-related products,” he said in a phone interview from his home in the small Greek island of Antiparos, where he escaped to from London with his wife and two kids during the pandemic. “And we did that very quickly.”Burman Family Holdings was established in 1995, shortly after Dabur went public. Its investments and partnerships range from what Burman calls “promising” domestic startups like DMI Finance to global companies such as Yum! Brands Inc.’s Taco Bell and Aviva Plc.Dabur has held up OK this year, with its shares rising 12%. While the benefits of ayurvedic products to protect against Covid-19 are still in question, sales of the company’s flagship chyawanprash -- a mixture of Indian gooseberry, honey, sugar, ghee, herbs and spices -- surged 700% last quarter from the previous three months. The company’s hand sanitizer is “pretty much sold out,” and its new vegetable wash is “flying off the shelves,” Burman said.But other ventures from the family office have struggled -- in particular Burman’s plan to open new Taco Bell restaurants in India.Here are some of his comments, edited and condensed for clarity.How did Covid-19 impact the family office’s investments?Some of our businesses have benefited, and some of them have been highly challenged -- let me give you an example of both.We have a joint venture with a very large Japanese health-care business, M3. We have been partners with them for nearly a decade now in India. And about four or three years ago, we bought a business that focused on online health-care education. Like many other online businesses, that business has flourished.Another business that we have is a partnership with Yum brands, we own Taco Bell in India. That business was growing very fast -- we have roughly 70 stores and we were adding one new store every 10 days. That business has obviously been very challenged because in India we went through a very severe lockdown.Tell us more about the Yum partnership.About four years ago, I was looking at our portfolio and felt that we had one massive gap in it, which was quick-serve restaurants. There were a lot of tailwinds in India for a business like this.We didn’t want to be in the burger business for various reasons -- predominantly being the connotation with beef. I had been traveling in the States and always loved Taco Bell. I approached them actually protectively and the timing worked, and we decided to get into business.We’re looking to grow the brand very aggressively in India. Our ambition remains the same: to get to 600 stores.How did you cater to the various diet preferences in India?The reason we decided to go with Taco Bell is partly because we always felt that the delivery mechanism was much more important than the protein. We felt the protein could be anything: chicken, lamb, a vegetarian option. In fact, 50% of our menu in India is vegetarian.What’s your favorite restaurant?My wife, Karima, is a foodie, and I have learned a great deal from her. My favorite restaurant in London is 43 Elystan Street, which is an unassuming neighborhood restaurant not far from where we live. We love the River Café whenever we manage to get a reservation.When I am Delhi, I eat Taco Bell almost every day. It is one of my favorite foods.Do you invest abroad?Because of the exchange controls, we have limited opportunities to invest outside of India. Typically, what we look to do is to back entrepreneurs. We’re involved with a very interesting coffee business in the United States. It’s run by this extraordinary young American entrepreneur with Indian origins. He’s taken that from zero to over $100 million in revenue in the last five years.The chairman of our Taco Bell business in India is an Englishman, and he’s always encouraged us to buy pubs. So over the last few years, we’ve been buying pubs, we own about half a dozen pubs in the London area, and we’ll continue to buy more.Any IPO plans?We will definitely look for financing opportunities, be it an IPO at some stage, or looking to bring in a financial partner or other people. We’ve built this reputation and track record of investing well in India, and a number of other families approach us -- more now than ever.Now let’s get a bit personal. How was life, growing up?I grew up with my parents, my grand-parents, my uncles and my aunts. I had the benefit of being able to learn from them, be counseled by them and share experiences with them -- this gave me a great deal of confidence.I started visiting our factories and learning how we made our products when I was seven years old. I started traveling with my grandfather and joining his business trips when I was nine, and often accompanied him to actual meetings.How did you get into the family business?I was privileged to be immersed in business at a young age. There was no doubt in either my mind or my family’s mind that my vocation would be business.As Dabur professionalized as we moved the governance away from the family, I decided I would focus on new ventures and try to start new businesses. Given our position and reputation in India, it became obvious to me that the best avenue for me was to try and work on joint ventures and bring successful ideas, products and businesses to India.My goal is to create as much value in our family office as we did in Dabur -- perhaps one day even more.How did you spend your free time during the pandemic?I read a great deal during the lockdown. Most of what I read are biographies and business-related books. I enjoyed Shoe Dog, which was inspirational, and Bad Blood, Damaged Goods and The Billion Dollar Whale, which all three presented what can go wrong in business. I found the recent biography on MBS very interesting and also greatly enjoyed The Hungry Empire, which tells the story of how the British Empire developed through its desire for exotic foods. I am now reading Concentrated Investing, which I would recommend to all investors.(Updates to include Monday’s stock move in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Prime Minister Narendra Modi wants all 1.3 billion Indians to be “vocal for local” — meaning, to not just use domestically made products but also to promote them. As an overseas citizen living in Hong Kong, I’m doing my bit by very vocally demanding Indian mangoes on every trip to the grocery. But half the summer is gone, and not a single slice so far.My loss is due to India’s Covid-19 lockdown, which has severely pinched logistics, a perennial challenge in the huge, infrastructure-starved country. But more worrying than the disruption is the fruity political response to it. Rather than being a wake-up call for fixing supply chains, the pandemic seems to be putting India on an isolationist course. Why? Granted that the liberal view that trade is good and autarky bad isn’t exactly fashionable anywhere right now. What makes India’s lurch troublesome is that the pace and direction of economic nationalism may be set by domestic business interests. The Indian liberals, many of whom are Western-trained academics, authors and — at least until a few years ago — policy makers, want a more competitive economy. They will be powerless to prevent the slide.Modi’s call for a self-reliant India has been echoed by Home Minister Amit Shah, the cabinet’s unofficial No. 2, in a television interview. If Indians don’t buy foreign-made goods, the economy will see a jump, he said. The strategy — although it’s too nebulous yet to call it that — has a geopolitical element. A military standoff with China is under way, apparently triggered by India’s completion of a road and bridge near the common border in the tense Himalayan region of Ladakh. It’s very expensive to fight even a limited war there. With India’s economy flattened by Covid, New Delhi may be looking for ways to restore the status quo and send Beijing a signal.Economic boycotts, such as Chinese consumers’ rejection of Japanese goods over territorial disputes in the East China Sea, are well understood as statecraft. In these times, it’s not even necessary to name an enemy. An undercurrent of popular anger against China, the source of both the virus and India’s biggest bilateral trade deficit, is supposed to do the job. But is it ever that easy? A hastily introduced policy to stock only local goods in police and paramilitary canteens became a farcical exercise after the list of banned items ended up including products by the local units of Colgate-Palmolive Co., Nestle SA, and Unilever NV, which have had significant Indian operations for between 60 and 90 years, as well as Dabur India Ltd., a New Delhi-based maker of Ayurveda brands. The since-withdrawn list demonstrates the practical difficulty of bureaucrats trying to find things in a globalized world that are 100% indigenous. Free-trade champions fret that the prime minister, whom they saw as being on their side six years ago, is acting against their advice to dismantle statist controls on land, labor and capital to help make the country more competitive. Engage with the world more, not less, they caution. But Modi also has to satisfy the Rashtriya Swayamsevak Sangh, the umbrella Hindu organisation that gets him votes. Its backbone of small traders, builders and businessmen — the RSS admits only men — was losing patience with the anemic economy even before the pandemic. Now, they’re in deep trouble, because India’s broken financial system won’t deliver even state-guaranteed loans to them. The U.S.-China tensions — over trade, intellectual property, Covid responsibility and Hong Kong’s autonomy — offer a perfect backdrop. A dire domestic economy and trouble at the border provide the foreground. Big business will dial economic nationalism up and down to hit a trifecta of goals: Block competition from the People's Republic; make Western rivals fall in line and do joint ventures; and tap deep overseas capital markets. The first goal is being achieved with newly placed restrictions on investment from any country that shares a land border with India. The second aim is to be realized by corporate lobbying to influence India's whimsical economic policies. As for the third objective, with the regulatory environment becoming tougher for U.S.-listed Chinese companies like Alibaba Group Holding Ltd., an opportunity may open up for Indian firms.All this may bring India Shenzhen-style enclaves of manufacturing and trade, but it will concentrate economic power in fewer hands, something that worries liberals. They’re moved by the suffering of India’s low-wage workers, who have borne the brunt of the Covid shutdown. But when their vision of a more just society and fairer income distribution prompts them to make common cause with the ideological Left, they’re quickly repelled by the Marxist voodoo that all cash, property, bonds and real estate held by citizens or within the nation “must be treated as national resources available during this crisis.” Who will invest in a country that does that instead of just printing money? At the same time, when liberals look to the business class, they see a sudden swelling of support for ideas like a universal basic income. They wonder if this isn’t a ploy by industry to outsource part of the cost of labor to the taxpayer. Slogans like Modi’s vocal-for-local stir the pot and thicken the confusion. The value-conscious Indian consumer couldn’t give two hoots for calls to buy Indian, but large firms will know how to exploit economic nationalism. One day soon, I’ll get my mangoes — from them.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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