Anand Burman, who was appointed chairman of Dabur India on Tuesday, is expected to relinquish his pervious post of chairman of Dabur Pharma later this week. Sources close to the development said this could happen at a meeting of the company's board of directors on Thursday.
The move is seen as a part of an elaborate succession plan within the Burman family. Though it could not be ascertained who would succeed Anand Burman, it is believed that another Burman could become the chairman of Dabur Pharma.
Dabur Pharma was originally a part of Dabur India, the flagship of the Burman family, but was demerged as a separate company some years ago. The Burmans had also demerged Dabur Foods as a 100 per cent subsidiary and put it under the charge of Amit Burman.
Dabur India recently announced that Dabur Foods would be merged into the company. On Tuesday, Amit Burman was made the vice-chairman of Dabur India, leading to speculation that he would take over from Anand Burman, who has a term of five years as the company's new chairman.
It is worth noting that Amit Burman's father, Gyan Chand Burman, was to become the chairman of Dabur India four years ago. But he died a few days before he was supposed to take over from his cousin, V C Burman. As a result, V C Burman continued as the chairman of the company for another four years. He has now handed over the baton to Anand Burman, his nephew and the son of A C Burman.
The Dabur India board has also co-opted Mohit Burman, who spearheaded the Balsara buy over a year ago, as a full-time director.
He is the son of the outgoing chairman V C Burman, who will continue to be chairman emeritus. With these changes in place, the second-generation Burmans will take over the reins of Dabur India.
Sunil Duggal, CEO, Dabur India, said, "This change in the constitution signifies the induction of the younger members. This will not impact the current functioning of the day-to-day management as the same professionals will continue to function in their respective verticals."
