While exact details are not known, Dabur is believed to have finalised the deal and is waiting for a final approval from the Board.
When contaced by FE, Dabur India CEO Sunil Duggal refused to comment on the possible deal. He, however, admitted that the company is looking at possible acquisitions in personal care and healthcare space. Company sources, however, said that the deal is likely to be closed in a few weeks.
The possible acquisition, industry sources said, will be used by the FMCG major to drive its OTC business, which has been identifed as a future growth area by the company.
In the coming days, the company is expected to make some aggressive forays into the Rs 2,500 crore OTC category led by an acquired product in the herbal based cough and cold domain, they said. Simultaneously, the company is also believed to be working on new OTC products and reviving some of its prescription based ayurvedic products to market them as OTC products.
The company has been working on giving its OTC portfolio a focus since last year when it restructured its Ayurvedic Specialities Division as Consumer Healthcare Division (CHD) to market both OTC and prescription-based ayurvedic medicines.
As part of the revamped strategy, the company has brought a number of prescription products under the OTC fold to expand its overall OTC portfolio.
The OTC healthcare market in India is beleived to be registering healthy growth rate of about 20 to 30 per cent annually. According to industry experts, herbal products are increasingly taking centre stage.