FMCG major Dabur today said it will go ahead with its overseas acquisition plans this fiscal, particularly in the personal care and healthcare segment, in the Middle-East and African countries.
"I think it is just a matter of time before we do a deal... We are continuously in talks with companies across geographies, but an acquisition is more likely in the overseas markets," Dabur Chief Executive Officer Sunil Duggal told PTI.
He said the company is currently eyeing developing markets where it already has a presence.
"We will restrict our acquisitive searches to the geographies in which we are currently present, and not really expand into entirely new geographies outside the scope of where we are. So, we are typically looking at markets like the the Middle-East and Africa," he added.
Countries in Africa and the Middle-East account for about half of Dabur's overseas business. Last fiscal, sales from international markets, including Cambodia, Philippines, Belarus and Bolivia, touched Rs 600 crore, making up for about 20 per cent of the company's total sales.
Though Duggal declined to comment on the size of deals that Dabur was looking at, he said the firm has the capability to raise money, "if needed, to fund big-ticket acquisitions".
The company, which sells skin and hair care products under brands like Vatika, Gulabari and Uveda, had announced last year that it could spend up to Rs 1,000 crore for acquiring firms both in the domestic and international markets. The acquisitions were, however, delayed due to lack of potential sellers.
Duggal said the company will be looking at the personal care and healthcare sectors to sustain its growth momentum of over 20 per cent in the overseas markets.
"The focus would substantially be on personal care, but we would also look at healthcare opportunities, which I believe will be far less in number than personal care," Duggal said.
He, however, did not disclose the names of the firms the company is currently in talks with.
In 2009-10, Dabur had a consolidated net profit of Rs 503.53 crore, a 28.7 per cent growth over the earlier fiscal. The company's international business grew by 26.3 per cent, led by robust growth in the GCC, Egypt, Nigeria, Levant and North African markets.
Last year, the company had acquired domestic beauty and cosmetic firm Fem Care Pharma for around Rs 250 crore.
