Consumer products maker Dabur India Ltd has acquired South African cosmetics manufacturing and trading firm Discaria in its first takeover deal on the continent.
Dabur said in a stock market disclosure that the company, through unit Dabur International Ltd, purchased the newly formed Discaria Trading (Pty) Ltd for ZAR1,000 (Rs 4,679).
The Indian company has one manufacturing unit each in Nigeria and Egypt, which caters to the north and east African markets. Discaria will now enable the maker of Real Juices to enter the southern part of the continent.
Dabur had made its first foreign acquisition by buying Hobi Kozmetik Group, a personal care products company in Turkey, for $69 million. In 2010, it clinched its biggest deal so far by acquiring Namaste Laboratories in the US for $100 million.
Dabur CFO Lalit Malik told VCCircle last month that the company would prefer a string of pearl strategy for its overseas acquisitions.
Dabur's rival Godrej Consumer Products Ltd has also struck several acquisition deals in recent years. Godrej Consumer has struck three acquisitions this year to boost its Africa operations.
Emami and Future Consumer Enterprise Ltd are among the other FMCG companies that have signed M&A deals in the past year. Consumer goods firm Marico is also gearing up to revive its M&A play, as hinted by Pankaj Saluja, the chief of strategy, M&A and new business for the company.
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