New Delhi: Dabur India Ltd is on a shopping spree to tighten its grip on the fast-growing personal care market in South Africa.
On Wednesday, the New Delhi-based company said its subsidiary Dabur South Africa (Pty Ltd) has entered into a share-purchase agreement with two companies—D and A Cosmetics Proprietary Ltd for 47 million South African rand and Atlanta Body & Health Products Proprietary Ltd for 2 million South African rand (around Rs24.3 crore together).
This is not Dabur’s first acquisition in South Africa. The company has made two purchases in the country before. In November, it bought the personal care, hair care and creams businesses of CTL Group of Companies for 18.8 million South African rand. And, its first acquisition in South Africa was in July when it scooped up Discaria Trading for just Rs4,679 (1,000 South African rand)–a small but important buy for the India company as it gave it an entry into the market.
D and A Cosmetics is engaged in business of development, manufacturing, packaging and sale of personal care and health care products. D and A Cosmetics markets products under the brand name Long and Lasting and sells to wholesalers and retailers in South Africa, Namibia, Switzerland, Botsonia and Lesotho, Dabur said in a statement to BSE. The company has a factory in East London in South Africa, and had sales of 24 million South Africa rand in the year ended 31 March 2016, it added.
Atlanta Body & Health Products is “engaged in the business of sales and distribution of Long and Lasting brand products for salons in South Africa,” according to Dabur statement. Atlanta’s revenue stood at 2.9 million South African rand in year ended 31 March 2016.
Dabur is one of the early entrants in Africa’s personal care market, but South Africa is a relatively new territory. In the year ended 31 March 2017, about 30% of Dabur net sales of Rs7,701 crore came from international markets.
Dabur did not give details of how much of its revenue came from Africa in 2016-17. In the previous year, Africa accounted for about 22% of Dabur’s revenue from international markets, which together accounted for about 32% of its consolidated revenue.
According to a 2010 study by consulting firm McKinsey and Co., consumer spending in Africa is set to double to $1.8 trillion by 2020.
Dabur made its first international acquisition in 2010 buying Hobi Kozmetik Group in Turkey for $69 million. It bought US-based Namaste Laboratories for $100 million later that year.