New Delhi: Dabur India is looking at aquisitions especially in sub-Saharan Africa this fiscal and is ready to spend up to Rs1,000 crore on that with some borrowings.
“Its hard to put a date and number on it... I won’t rule out doing an acquisition this fiscal,” Dabur India CEO Sunil Duggal said.
“I don’t think there is anything to be announced in 2009... We do have capabilities to acquire companies, may be up to Rs1,000 crore, with some borrowings. But the target has to be right and a good fit,” Duggal told CNBC-TV18.
“We are looking for opportunities in Africa but nothing active is there. We have a strong footprint in North Africa. At this point of time, we are looking at sub-Saharan Africa in a concerted fashion but nothing very interesting is coming up as of now. So there is no deal,” Duggal said.
He denied there was any deal, particularly in Nigeria.
Duggal said the company had no hesitation in buying Fem Care once it found the target. “Other opportunities could come up, it’s about time...”
On rising input costs, Duggal said Dabur was facing pressures, especially from sugar, but added the company would resort to raising prices of its products as a last resort.
“The only pricing impact we have felt is that of sugar. The prices have gone up by 25-30% on quarter-on-quarter basis. Otherwise, the price points are pretty much under control,” Duggal said.
However, “going forward we could see some pressure on edible oil and some other agri products such as honey. Honey in fact has been going up very sharply...and honey may raise prices.”
Duggal said although things were under control as of now the company was yet to see as to how the monsoon would impact input costs.
“If we see a trend towards high inflation, we do take up the prices. We do not see the trend as of now but if it does, perhaps in the third quarter, we could take up prices but I don’t think the price increase would be significant,” he added.
Duggal said the company has not seen any margin pressure so far but going into October “there could be some pressure”.