Dabur India has bought Turkish personal care company Hobi Kozmetik for Rs324 crore, marking its maiden foray into foreign acquisition. Dabur’s overseas subsidiary, Dabur International, acquired 100 percent stake in three Hobi group firms — Hobi Kozmetik, Zeki Plastik and Ra Pazarlama — in a move that analysts felt was a bit expensive but would help the Indian personal care and food products maker. “This acquisition is an important step towards consolidating our already substantial presence in the Middle East and North Africa region,” says Dr Anand Burman, Chairman, Dabur India. The transaction is expected to be completed by the third quarter of 2010-11.
Established in 1974, Hobi Kozmetik is a Turkish market leader in hair gels with a 35 percent share; the company markets haircare and skincare products under the Hobby and New Era brand names. Its products are sold across 35 countries including the Middle East and North Africa. “The Hobi acquisition offers us an entry into Turkey, and the company’s brands complement Dabur’s portfolio. Dabur may consider selectively introducing Hobi’s brands in India in the long-term”, says
Sunil Duggal, CEO, Dabur India.