NEW DELHI — Indian fast-moving consumer goods company Dabur India Ltd. has acquired a leading personal care products company in Turkey.
This story first appeared in the August 2, 2010 issue of WWD. Subscribe Today.
Dabur’s overseas subsidiary, Dabur International Ltd., bought a 100 percent stake in three firms — Hobi Kozmetik, Zeki Plastik and Ra Pazarlama — of Turkey-based personal care company Hobi Group for $69 million.
The purchase, which was effective July 26, is another example of a trend of larger Indian fast-moving consumer goods companies operating in the personal care arena that have been growing via acquisitions of foreign holdings.
Dabur, known for its strong presence in the natural hair oils market, has been strengthening its personal care portfolio in the last two years. The launch of Uveda, its skin care line, last year was followed by the April acquisition of India-based Fem Care Pharma. Fem Care is a leading brand of facial bleach in India.
“The acquisition of Hobi Kozmetik is in line with Dabur’s strategy to aggressively expand its scale of operations and strengthen its presence in the fast-moving consumer goods space across the globe,” said Anand Burman, chairman of Dabur India Ltd. “This acquisition is an important step toward further consolidating and expanding our already substantial presence in the Middle East and North Africa region.”
Hobi Kozmetik, a 36-year-old company, is a market leader in the hair gel category with a 35 percent share in Turkey. The firm markets a wide range of hair and skin care products under the Hobby and New Era brands. Its products are available in 35 countries.
“This transaction offers us substantial synergies and an opportunity to broaden the company’s product portfolio to further capitalize on the emerging opportunities in domestic and international markets,” said P.D. Narang, group director of Dabur India Ltd.
Dabur has shown strong volume growth across key categories like hair oils and skin care in its first fiscal quarter of 2010.
The firm saw 19.5 percent growth in consolidated revenues to 9.24 billion rupees, or about $202.1 million at average exchange. Quarterly net profits surged 20.5 percent to 1.07 billion rupees, or about $23.4 million, up from 890.1 million rupees, or about $19.5 million a year ago.
Hair oil sales increased 16.5 percent in the quarter and skin care was up 12.4 percent.
Dabur’s international business registered a 28.7 percent rise in sales during the quarter, led by the Nigerian, Egyptian, Levantine and North African markets.