Dabur buys Turkish beauty firm

Dabur India has had made its first overseas acquisition by buying Hobi Kozmetik Group,

a leading personal care products company in Turkey. It has bought the Group for Rs 324 crores. Dabur’s overseas subsidiary, Dabur International, acquired 100 per cent stake in three Hobi group firms Hobi Kozmetik, Zeki Plastik and Ra Pazarlama in a move that analysts felt would help the Indian personal care and food products maker. Dabur already has a substantial presence in the Middle East and North Africa. And the latest acquisition is in line with Dabur's strategy to strengthen its presence in this area.

The transaction is expected to be completed by the third quarter of 2010-11. Hobi Kozmetik is a Turkish market leader in hair gels and its products are sold across 35 countries. The Hobi acquisition would offer the Indian company an entry into Turkey markets. The deal offers synergistic benefits through complementary product portfolio and cross-selling opportunities, besides giving a fillip to Dabur’s international business.

Aided by volume-driven growth across hair oils, skin-care and toothpastes, Dabur’s consolidated net profit was up 20.5 per cent at around Rs 1,07 crores against Rs 89 crores in the corresponding period last year. While topline growth was strong at 23 per cent above estimates, earnings grew 17 per cent year-on-year below estimates.