New Delhi: FMCG company Dabur said on Thursday its acquisition plans are unlikely to happen this fiscal as it is still scouting for potential targets, but is hopeful that it could make a buyout next year.
The company has earlier announced that it can spend up to Rs1,000 crore on acquisitions, both in domestic and international markets, this fiscal to grow its business.
“There is no immediate acquisition happening. It does not mean that it will not happen in future. It will happen, but this fiscal it is unlikely,” Dabur CEO Sunil Duggal said.
He said the company is in talks with several firms both in the domestic and international market, particularly in the health care and personal care segment.
“You cannot plan acquisition. You have to keep talking we are always in some level of talks. Most of them are at a very nascent stage, on whether there is any interest on the part of the seller or also in terms of evaluation,” he said.
He said while the company is looking for acquisition of up to Rs1,000 crore, it will prefer for smaller size deals within the range of Rs100 crore to Rs300 crore.
“We intend to avoid taking large amount of debt. We want to keep our book as free of debt as possible. So a smaller acquisitions is more or less preferred as it enables what we call scalability,” he said.
Dabur had last year acquired personal care firm Fem Care for over Rs250 crore, expanding its skin care portfolio.