Dabur India's stock experienced its sharpest fall in 20 weeks on Tuesday, declining by 4% to trade at Rs 406.15 against a previous close of Rs 424.40. This significant drop follows a directive from the Food Safety and Standards Authority of India (FSSAI) instructing the FMCG giant to cease using "100 per cent" claims on several of its food products.
FSSAI Deems "100% Pure" Claims Misleading
The FSSAI stated that claims such as "100 per cent Natural," "100 per cent Pure," "100 per cent Purity Guaranteed," "100 per cent Organic," and "100 per cent Tender Coconut Water" are potentially misleading to consumers. The regulator argued that these absolute purity or quality claims are difficult to verify and may violate established food safety and labelling regulations governing advertising and product claims.
The directive applies to a broad range of Dabur's offerings, including popular items like:
- Honey
- Apple cider vinegar
- Virgin coconut oil
- Sesame oil
- Cow ghee
- Coconut water
- Coconut milk
The regulator has explicitly instructed Dabur to stop marketing these products with the disputed "100 per cent" claims unless they can fully comply with applicable labelling standards.
Market Impact and Company Response
The market reacted sharply to the news, bringing Dabur's share price close to its 52-week low of Rs 401.05, previously recorded on March 30, 2026. The company's market capitalization also saw a significant dip, settling at Rs 72,288 crore.
In response to the FSSAI notice, Dabur India confirmed receipt and issued a statement. "We have received the FSSAI notice and are in the process of checking the content mentioned in the notice on our website," the company said.
This recent decline adds to a challenging period for the FMCG stock, which has delivered negative returns over the past five years. Specifically, it has slipped 35% in two years and fallen 28% in three years. Over a ten-year span, however, the stock has gained 38%.