Dabur India earmarks $250-500 mn for overseas buys

Dabur India earmarks $250-500 mn for overseas buys

Mumbai: Personal care and food products maker Dabur India Ltd is scouting for firms in US, Europe, U.A.E. and parts of Africa for acquisitions and has earmarked $250-$500 million, a senior company official said.

“We are focussing on the MENA region (Middle-east, Egypt, Nigeria and Africa) mainly UAE and Africa... and also looking at companies in Europe and the US where we don’t have much of a footprint," vice-chairman Amit Burman told reporters.

“From the internal accruals and the debt we can raise we are looking at a size of $250-$500 million," he said on the sidelines of a conference on Thursday.

Dabur’s international business contributes about 15% of overall revenues and Burman said this segment was growing about 50% year-on-year.

Its net profit may rise 25% on revenue growth of 22-25% in 2009-10 helped by new brand launches and the recent acquisition of Fem Care, he added.

Net profit margins for the current fiscal may improve by 3-4% over last year, helped by the combination of portfolios with its recent acquisition of Fem Care, Burman said.

Dabur also plans to invest Rs250-500 million over two years on expanding its retail store network in the country, he added.

The firm plans to add 4-5 stores this fiscal and 10 stores each year from the next fiscal, he said.

At 2.28pm, shares in the firm were up 1.14% at Rs132.75 in a choppy Mumbai market.

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