The Hindu Business Line : Dabur in talks to acquire brands

DABUR India today said that it was in talks with three domestic firms to acquire their brands and that it is also in the process of acquiring the Honitus brand from its sister concern, Dabur Pharma, for a consideration of Rs 4.5 crore.

Mr Sunil Duggal, CEO, Dabur India, said: "The acquisition of Honitus would be completed by April 1, 2005. The brand fits our portfolio and we intend to launch more products such as lozenges under the brand subsequently. As far as the other acquisitions are concerned, we have held preliminary talks with three domestic companies to acquire their brands.''

The company has also said that the Nigerian subsidiary of the company would begin production this month.

"We had floated Africa Consumercare in Nigeria through Dabur International. The Nigeria plant will start production this month,'' Mr Duggal said after announcing the company's quarterly earnings.

Dabur International holds 90 per cent stake in the African company, while a local partner holds the rest, he added.

The African subsidiary will make personal care products like toothpaste and soap for the Nigerian market; the company might also export the products to neighbouring countries such as Ghana.

Meanwhile, in line with its strategy for the domestic market, the company will launch four new products during the current fiscal. This will include one product each in the haircare and skincare segments, a white toothpaste and a Hajmola variant.

Mr Duggal also said that due to inflationary pressures Dabur is likely to increase the prices of some of its products, particularly hair oils, by 4-7 per cent in the current fiscal.

Meanwhile, the company has reported 28.17 per cent jump in net profit for the second quarter to Rs 43.13 crore against Rs 33.65 crore during the same period last year. It has declared a dividend of 100 per cent.

Net sales rose 9.47 per cent to Rs 302.83 crore against Rs 276.63 crore earlier.