Dabur India strengthens skin care with acquisition

India-based consumer goods company Dabur India is expanding its presence in the skin care market by taking a controlling stake in Fem Care Pharma.

The company has acquired 72.5 per cent of Fem Care Pharma for 2.04bn rupees ($41.23m).

A further offer will be made by Dabur for an additional 20 per cent of the company’s shares.

“Acquisition of Fem Care Pharma is in line with our strategy to aggressively expand Dabur’s operations and strengthen its presence in the fast moving consumer goods space,” said Dabur India chairman Dr Anand Burman.

Strengthening skin care

In particular, the acquisition will help Dabur strengthen its position in the personal care market. The company already offers hair and skin care products under the Amla, Vatika and Gulabari brands, but the addition of the Fem line will help build up the skin care sector.

“This transaction would give Dabur an entry into the high-growth skin care market with an established brand name, Fem,” added Burman.

Fem Care Pharma’s portfolio includes hair bleach and hair removal products as well as liquid soap products, although Dabur plans to extend the range in future.

In addition, Dabur will benefit from Fem Care Pharma’s international presence, including the Yemen, Maldives and Mauritius, Malaysia and the United Arab Emirates.

“The acquisition brings to Dabur a portfolio of well-known household brands that enjoy a pole position in their respective categories, offering us a strong platform to enter newer product categories and markets. Fem’s brands fit in well with Dabur’s future growth plans, both for India and international markets,” said Dabur India CEO Sunil Duggal.