Dabur India set to buy 60% in Singapore co for Rs 675 cr

IN ONE of the largest overseas acquisition deals in the FMCG space, Dabur India is close to acquiring more than 60% in Singapore-based consumer goods company Unza Holdings for Rs 600-675 crore. If the deal is signed and sealed, it will boost Dabur’s consolidated sales by 22% and make it the third largest FMCG company after HLL and ITC. Dabur India group director PD Narang declined comment on the deal. Unza has 48 brands in its portfolio and a presence in five markets — China, Singapore, Malaysia, Hong Kong and Indo China. The $150-million company is owned by private equity funds Actis, Standard Chartered and the company management with a 30% stake each. While the deal will give the two PE funds an opportunity to exit, it will give Dabur access to 58,000 retail outlets and five manufacturing locations in the Asean countries, including one in China, all of which can serve as low-cost hubs for making Dabur products. At the same time, Dabur will be able to launch its ayurvedic range in the Asia Pacific, which includes the high growth markets of China and Vietnam. The takeover will give the ayurvedic company entry into categories such as laundry detergents, skin care, fragrance, toiletry, splash colognes and hair colour, beefing up Dabur’s domestic portfolio as well.

Unza is among top 3 consumer goods cos in Malaysia

SOMEof Unza’s prominent brands are Enchanteur (toiletry), Eversoft (skincare), Romano (personal care for men) and MaxKleen (detergent). Unza set up shop 27 years ago as a marketing company with one brand. With a workforce of 4,100, it’s now among the top three consumer goods company in Malaysia and among the top 10 in Vietnam with 9% and 6% market shares respectively in the personal care category. Dabur’s consolidated sales are in the region of Rs 2,300 crore and if Unza’s Rs 650 crore ($150 million) are added, it will boost Dabur’s consolidated topline to nearly Rs 3,000 crore. The appetite for overseas acquisitions is growing larger among Indian companies striving to make it big globally. Even those who have seldom attempted an acquisition in the past, such as Godrej Consumer or Marico, have bought brands abroad. Godrej Consumer bought UK’s Keyline Brands, an FMCG company with the Erasmic and Cuticura brands in its portfolio. Last year, Marico acquired haircare brand Fiancée in Egypt from the Ready Group which gave it easy entry in Egypt’s Rs 170-crore hair care market.

Courtesy: EconomicTimes

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