Shares of traded flat in Friday’s trading session on June 12, even as the ‘s benchmark indices rejoiced, with investors cautious following the United States Food & Drug Administration’s (USFDA) import alert for drugs manufactured at the company’s Silvassa plant.
Dabur India share price was trading on a flat note with a positive bias. The stock opened at ₹422.15 apiece, down from ₹422.20 at yesterday’s close. It hit the day’s high and low of ₹428.80 and ₹420.45.
Why did USFDA issue an import alert on Dabur?
The order was issued by after it identified certain deficiencies on account of data integrity and maintenance lapses.
According to an exchange filing by Dabur on June 11, US FDA had inspected the company’s manufacturing plant at Silvassa, Dadra and Nagar Haveli and had identified certain deficiencies after which inspectional observations were issued. Dabur said that responses were suitably submitted to US FDA.
“Now, pursuant to observations noted by the authority, review of the company’s responses and Establishment Inspection Report (EIR), US FDA has issued an Import Alert (IA) 66-40 on June 10, 2026, for drugs manufactured by the Company at the aforesaid plant,” Dabur said.
What is the impact of USFDA action on Dabur’s financials?
According to the company, the impact on its financials, operations or other activities is nil as the order impacts only a small part of its manufacturing plant.
“The order concerns to only a small part of our manufacturing plant, which generates insignificant revenue for the company. Domestic products are not covered and not impacted by this order. The aforesaid plant continues to be operational,” Dabur said in the exchange filing.
Despite this, Dabur is actively looking to engage with USFDA by providing corrective and preventive action plans along with proactive and strong action on the ground to fix the identified gaps.
In addition, multiple internal and external independent third-party testing has shown no out of specification or any other concerns with any of the company’s products, the company claimed.
“We remain committed to product quality and consumer safety despite this one-off incident. We operate sites across the globe and are taking effective action to implement alternate sourcing strategies for our US customers,” Dabur said.
As of 10.30 am, Dabur shares were trading at ₹424.70 on BSE, up 0.59%.
Disclaimer: This story is for educational purposes only. We advise investors to check with certified experts before making any investment decisions.