Dabur India in talks to buy Turkish personal care firm Hobi Kozmetik: report
22 Jul 2010
Dabur India, one of India's leading personal care and food products companies, is in advanced talks to buy Turkish personal care company Hobi Kozmetik, The Economic Times today reported.
The company has been in talks with several overseas companies but Hobi Kozmetik is the front-runner, the newspaper reported citing an anonymous official.
"Yes, we are close to finalising an acquisition overseas. But we are talking to more than one company and I cannot divulge any name," Mohit Burman, director, Dabur India, told the paper.
Founded in 1974, Hobi Kozmetik is Turkey's most prominent and reputable producer of hair and body care products. It specialises in hairstyling, haircare, skincare and bath and shower products sold under the brand names Hobby and New Era.
It holds a 40-per cent market share in Turkey's hair gel sales and a substantial market share of hair care and skin care products. Hobi Kozmetik's products are sold in 30 countries and has an annual turnover of about Rs100 crore.
Armed with a war-chest of $250-$500 million, Dabur India has been planning since September 2009 to expand its operations by acquiring firms in the US, Europe, the UAE and Africa. (See: Dabur readies war chest of $250-500 million for acquisitions)
With well known brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real fruit-based beverages, Dabur India has relied on expansion by acquiring domestic companies, but if the Hobi Kozmetik deal goes through, it would be the first overseas acquisition made by the 126 year-old company.
Dabur India had earlier taken a 72-per cent stake in Fem Care Pharma for around Rs203 crore in an all-cash deal, (See: Dabur acquires Fem Care for Rs203 crore) and last month announced the formal merger of Fem Care Pharma Ltd with itself.