A fresh round of acquisitions has begun in the R1.2 lakh crore FMCG industry. Even as Emami is scouting for acquisitions in the branded personal and healthcare sectors, Marico is looking at further acquisition opportunities after acquiring an 85% equity stake in International Consumer Products Corporation (ICP), a Vietnamese company, a few days ago.
Yet another major player, Godrej Consumer Products is also scouting for acquisitions in developing markets across the globe. Like Emami, Dabur India is also looking at acquisitions in the health & wellness sector to extend its product portfolio. Meanwhile, other FMCG majors are evaluating acquisition opportunities to foray into new markets across the globe. According to analysts, a total of 13 acquisitions were clinched by FMCG companies in calendar year 2010. ?Led by Godrej, which had seven acquisitions on its account, FMCG majors, including Marico (2 buyouts), Dabur (2 acquisitions) and Emami (1 buyout) went on a global shopping spree during 2010,? said an analyst based in Mumbai. In December, Reckitt Benckiser bought Ahmedabad-based Paras Pharma for R3,260 crore. On the group?s acquisition strategy, Adi Godrej, chairman of the Godrej Group, said, ?We are looking at strategic and accretive acquisitions in developing markets across the globe.? GCPL?s acquisitions include that of African personal care brand Tura from Nigeria’s Tura Group, Latin American hair colour firm Issue Group and Argentina’s Argencos.
According to Aditya Agarwal, director, Emami Group of companies, the company is looking for acquisitions in both domestic as well as global markets.? We are in talks with a few players in the personal and healthcare sectors.? According to industry sources, Emami is interested in acquiring Marico’s refined sunflower oil brand Sweekar. However, Agarwal declined to comment on Emami’s acquisition plans. After acquiring the US based Namaste Group in November 2010, Dabur India is looking at acquisitions to extend its product portfolio. ?We are looking at acquisitions in the beauty and wellness space in domestic markets.
Also, we are scouting for acquisitions in Africa and West Asia in health & wellness space and toileteries,? said Sunil Duggal, chief executive officer of Dabur India. In 2008, Dabur acquired a majority stake in Femcare Pharma to extend its product portfolio.