With Rs 7,000 cr cash reserve, Dabur scouts for buyouts

PTI

New Delhi, November 8

Homegrown FMCG maker Dabur India, armed with a cash reserve of Rs 7,000 crore, is scouting for acquisition opportunities in healthcare and home & personal care segments, according to its CEO Mohit Malhotra.

Besides, Dabur is looking for acquisition opportunities in the online space, and with several D2C (Direct to Consumer) brands operating in it, it finds the valuation “more reasonable” now and will pursue it if it finds a suitable one for growth, he said.

Eyes online space

• The company is scaling its presence in the online space, which includes e-commerce channels and D2C business, where it plans to introduce more innovations under existing brands and through inorganic opportunities
• The company would pursue organic growth with new brand launches in skin care and premium skin care, and the rest would be through acquisitions

The company is scaling its presence in the online space, which includes e-commerce channels and D2C business, where it plans to introduce more innovations under existing brands and through inorganic opportunities.

“We are introducing innovations there. Those innovations are coming on the back of existing brands and these innovations will come on the back of some new brands that we might launch or we are looking at an acquisition for a new brand,” Malhotra said.

“We do not want to do any organic new brand launches with the exception of skincare and premium skincare that we are not present in. That is where we might do an exception otherwise we look at it to see acquisitions,” he said.

If Dabur gets any “reasonable valuation”, then it might look at an acquisition for which it has “around Rs 7,000 crore lying in our balance sheet for that particular purpose,” he said.

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