With this sell-off GCIL has become 100 per cent subsidiary of Argolimen and Dabur's nominee directors have resigned from the board of GCIL, Dabur said in a statement today.

"The disinvestment is in line with Dabur's strategy to concentrate on areas of its core competence and move out of ventures in unrelated areas," Dabur India Director PD Narang said.

The company received the entire amount yesterday and GCIL has also repaid inter corporate loans with interest amounting to Rs 6.42 crore.

The corporate guarantee provided by Dabur have also been released and replaced with those of Agrolimen.

Dabur had made initial investment of Rs 9.29 crore to own 92.99 lakh shares in GCIL and the company will book substantial profit on account of this sale after deducting expenses and taxes, it said.

"Thisdisinvestment has unlocked some of the hidden value and the inflow will substantially boost the company's profits in the current year," Dabur vice chairman and managing director GC Burman said.

Dabur has also entered into a non-competition agreement with Agrolimen group for consideration of Rs 11.25 crore which the company will receive in year 2001.

The company had entered into a joint venture with Agrolimen in 1993 for manufacturing and marketing of bubble gums and other confectioneries and since introduced brands like Boomer, Bonkers and Donald in the domestic market.

In March this year, Dabur sold 20 per cent stake in Excelcia Foods Ltd to Nestle Sa reducing its stake to 40 per cent and giving management control to Nestle. The company realised Rs 10.6 crore from that sale.