Abstract

On November 21, 2008, one of India’s leading FMCG majors, Dabur India Limited, announced its plans to acquire a 72.15 percent stake in Fem Care Pharma Limited (FCPL) to tap the potential in the lucrative skin care market. With this deal, FCPL was expected to gain access to Dabur’s distribution network and expand its presence in domestic and international markets. On the other hand, Dabur aimed to tap those markets where FCPL had a strong presence and scale up its operations by widening its product portfolio. Industry experts felt that the deal was priced a bit too high for a relatively small FMCG company like FCPL. However, other analysts opined that the growth outlook of the acquisition was positive considering the potential of the skin care market.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Acquisition, FMCG, product portfolio, distribution channel, SEBI, strategy, restructuring, rebrand, research and development, Dabur, Fem