Dabur readies war chest of $250-500 million for acquisitions

19 Sep 2009

Dabur India, one of India's leading personal care and food products companies, is planning to expand its operations by acquiring firms in the US, Europe, the UAE and Africa.

"We are focussing on the Middle East and North Africa (MENA) region, mainly the UAE and Africa... and also looking at companies in Europe and the US where we don't have much of a footprint," the company's vice chairman Amit Burman told reporters on the sidelines of a conference 'The India Retail Forum' on Thursday.

"From the internal accruals and the debt we can raise we are looking at a size of $250-$500 million," he added.

The company expects to report 25-per cent growth in a net profit and 22-25 per cent growth in revenue in the current year, aided by the recent acquisition of Fem Care, Burman said, adding that he sees a net profit margins of 3-4 per cent over last year.

Dabur India had earlier acquired 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)

The skincare segment is expected to contribute 15 per cent to the overall revenue as against 5 per cent last year.