Dabur ropes in Accenture for overseas acquisitions
By siliconindia   |   Tuesday, 02 January 2007, 18:30 IST
Printer Print Email Email
KOLKATA: Dabur India has roped in Accenture to help identify companies and brands as part of its corporate growth strategy to increase global footprint and double turnover by 2010. This is a result of the company’s inability to find players it could acquire in the personal care and herbal over-the-counter (OTC) product segments for an agreeable price. "We are actively scouting acquisition opportunities and reviewed a few offers in India but had to reject them due to very high valuations riding on the euphoria of high economic growth. Compared to Indian companies, valuations overseas are more realistic,” said Dabur India chief executive officer Sunil Duggal. While he refused to state a deadline within which the acquisition would be completed, he told ET, “We expect to complete a deal soon. For starters, we are looking for an acquisition in the range of Rs 150-200 crore.” The first six moths of the current fiscal have seen the company grow at a compound annual growth rate (CAGR) of 15 percent. Its international business is growing at a CAGR of 25-30 percent, while its food business at 30-40 percent CAGR. Keeping the recent developments in mind, Duggal said that Dabur might rope in a strategic investor if the deal size warrants. “In such a case, we will acquire controlling bloc from the prospective seller,” he added. Dabur India is eyeing acquisitions not merely to scale up business, but also to extract synergy, and break into new markets and acquire latest technology and capabilities. This however will not be complemented by a foray into new categories, said Duggal. “The acquisitions are an effort to put into play a new set of growth drivers which will help the company increase its international earnings from 13 percent of its total turnover to 25 percent by 2010. Revenue from the core domestic business is growing by 10-15 percent. Unless we have new growth vectors like acquisitions in new geographies, we cannot achieve the targeted turnover of Rs 3,000 crore by 2009-10 from an estimated Rs 2,200 crore by 2006-07 fiscal,” Duggal told ET. Simultaneously, efforts are on to grow its cash-cow businesses like food & beverages and home care organically.

siliconindia