Yet another round of acquisitions has begun in the FMCG industry. After completing merger of Fem Care Pharma, Dabur India is aggressively scouting for acquisitions in developing countries in Africa. Currently, Dabur India is in talks with personal care firms in Nigeria and South Africa, an industry source said. ?The company is looking at big-ticket acquisitions and is planning to spend Rs 1,000 crore for its acquisitions in domestic as well as overseas markets,? the source added.
Another FMCG major Emami is in the process of acquiring an Egyptian company to set up a manufacturing hub there. Tata Global Beverages (TGBL), erstwhile Tata Tea, is scouting for acquisitions in the US markets to extend its global presence. After clinching five overseas acquisitions this quarter, Godrej Consumer Products (GCPL) is looking at acquisitions in overseas markets. In essence, the country’s FMCG majors are increasingly looking at overseas acquisitions for growth.
When contacted by FE, Dabur India chief executive officer Sunil Duggal said, ?We are in talks with companies across geographies. Our focus is on developing markets where we already have a presence. We are looking at overseas acquisitions in personal care and healthcare sectors.? Last year, the company had acquired domestic cosmetic firm Fem Care Pharma for around Rs 250 crore.
According to Duggal, Dabur?s international business grew by 26.3% last fiscal. ?Our overseas business in Africa and the Middle-East account for about half of Dabur?s total global business. Last fiscal, sales from international markets touched Rs 600 crore,? he added.
On GCPL?s acquisition strategy, Adi Godrej, chairman of the Godrej group said, ?We will certainly look at acquisitions, which are strategic and accretive. We have done five acquisitions this quarter which would tremendously add to our profit.?
After scouting for overseas acquisitions for over a year, Emami has now zeroed in on an FMCG firm in Egypt. Harsh Vardhan Agarwal, director of Emami said, ?We are in the process of setting up a manufacturing hub in Egypt after acquiring a FMCG firm there.? The company plans to fund its new acquisition through internal accruals. Meanwhile, Tata Global Beverages is looking at acquisitions in the US and Eastern Europe to enhance its global portfolio. ?The company is looking at opportunities to extend its product range beyond coffee and tea in domestic and overseas markets,? said an analyst based in Mumbai. When contacted, TGBL declined to comment on its future plans.