Leading Indian FMCG, Dabur, announced it will acquire the personal care, hair care and creams businesses of the South African based-CTL group of companies. The agreement has been valued at €1.36 mn (Rs 10 crore).
The acquisition will mark Dabur's entry into the South African personal care market, the company said in a statement. Dabur South Africa will acquire CTL Contracting Proprietary’s business of development, manufacturing, packaging and sale of personal care products.
In addition to Dabur - a wholly owned subsidiary of Dabur International - acquiring 100% share capital of Discaria Trading, it also stated it would gain equipment from Carbotec Laboratories Proprietary and immovable property from CTL Management and Personnel Services Proprietary.
In July, Dabur announced it would acquire Discaria Trading, a South African cosmetics manufacturing and trading company, providing Dabur with its initial entry into the region’s market. Then in August 2016, it renamed Discaria Trading to Dabur South Africa.
"The acquisition of the businesses of CTL Group is an important step towards further consolidating and expanding Dabur's already substantial presence in Africa," the company said.
Sunil Duggal, CEO, Dabur, added: "With this acquisition, Dabur has consolidated its position as a leading player in the global personal care products market. This acquisition represents a significant step for Dabur in our strategy to accelerate growth in the international market, particularly Africa.”
Dabur currently has two manufacturing facilities in Africa, in Nigeria and Egypt. It also has other businesses in other parts of the continent.
Duggal went on to say: "The strategic acquisition, which will help advance our personal care business in Africa, ushers in a new and exciting era of robust growth at Dabur. We expect this transaction to provide a tremendous platform for value creation in Africa."
In October, in the company’s Q2 review announcement, Duggal highlighted its success in the domestic market: “We continue to invest behind our brands and are confident of our ability to report profitable growth, going forward. Even in a tough environment, we have navigated the external business environment well and our domestic FMCG business ended Q2 of 2016-17 with a volume growth of 4.5%.”
In 2010, the company made its first foreign acquisition by purchasing the personal care products giant Hobi Kozmetik Group in Turkey for $69 mn (€62.4mn). In the same year, it also acquired US-based Namaste Laboratories for $100 mn (€90.4mn).