Dabur India Ltd., owned by the billionaire Burman family, is on a spree for acquisitions in India and Southeast Asia. The plan is to compete and establish its presence in a new overseas market amid heated domestic competition.
After its $71 million purchase of spice producer Badshah Masala Pvt. Ltd. in October, Dabur is assessing other targets in health, food, and personal care in those markets.
According to Chief Executive Officer Mohit Malhotra, there are a lot of opportunities, and the valuations, relative to what they were in the past, have become more reasonable now.
The expansion comes as Dabur faces intensifying competition from deep-pocketed rivals, including global consumer titan Unilever Plc, which is swooping in on upstart Indian brands. Powerful Indian conglomerates led by two of Asia’s richest men, Mukesh Ambani and Gautam Adani, also have ambitious plans to scale up in the household retail space, while Tata Consumer Products Ltd. is looking to bulk up its portfolio through acquisitions.
Last year, Hindustan Unilever Ltd. purchased wellness brand Zywie Ventures Pvt. and a minority stake in health supplement maker Nutritionalab Pvt., while Adani Wilmar Ltd. made acquisitions including the Kohinoor ready-made curries and rice label from McCormick Switzerland.
Back in India, the conglomerate has also been struggling with elevated inflation that has eaten into the spending power of Indians, particularly in the country’s rural localities, where the company makes half its sales.
Dabur, which already sells products in more than 120 countries, is also looking at deals to help gain a foothold in Southeast Asia. “Southeast Asia is where we are not present; our competitors are all present in Southeast Asia,” Malhotra said.
He added, “The immediate environment is very volatile with currencies playing havoc; I think once this settles down, then we might look at some inorganic opportunity.”