Dabur earmarks Rs 200 cr for brand acquisitions  ( September '3,2004, HBL)

DABUR India Ltd (DIL) is on the prowl. The company has decided to acquire those brands in the personal and healthcare segments which are positioned on the herbal plank. And these could be brands available either within India or even overseas.

"We are looking to scale up our business inorganically by acquiring brands in the healthcare and personal care space which have been positioned on the herbal platform. DIL has a Rs 200-crore war chest and if needed, we can even raise debt to finance acquisitions," Chief Executive Officer, Mr Sunil Duggal, told Business Line.

He said while in the near term, acquisition possibilities were being examined in the domestic market only, the company was already in discussions with merchant bankers for global buyouts as well.

"We have appointed a well-known name in the merchant banking community to chalk out a clear buyout strategy for the domestic market. But for the overseas markets, DIL is still talking to several consultants and no one has been handed over the mandate as yet. The company wants to acquire brands that are synergistic with its existing businesses," Mr Duggal said.

On whether the company would utilise the presence of its several joint venture operations in overseas markets for conducting the acquisitions, he replied in the affirmative while adding that some more infrastructural inputs will be needed in these markets before actual acquisitions begin.

DIL has JV operations in Bangladesh and is planning to forge a JV with its local partner in Pakistan. It has recently acquired a company called African Consumer Care in Nigeria.

While Mr Duggal declined to name the merchant banker the company has appointed for its local buyouts as well as which brands it is particularly interested in, industry sources named Mysore Sandal Soap among possible contenders. A brand currently owned by the Karnataka Government, Mysore Sandal has other suitors as well, including Wipro Consumer Care Limited.

This is the first time DIL has announced its decision to take the brand acquisition route to growth, after redefining its brand architecture last year to focus clearly on five brands catering to well-defined product segments. Way back in 1996, Dabur India had acquired the Binaca brand from Reckitt Benckiser with plans to launch several oral care products under it, but today the Binaca portfolio comprises only toothbrushes.

Mr Duggal said the company was keen to enter new product segments and sources said the company's interest in acquiring brands like Mysore Sandal could mean a foray into completely new product categories like toilet soaps