Dabur's Acquisition of Fem Care Pharma|Business Strategy|Corporate Strategy|Case Study|Case Studies

Details

Case Code : CLBS112
Publication date : 2009
Subject : Business Strategy
Industry : -
Length : 03 Pages
Price : Rs. 100

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Key words:

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

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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.

Introduction

On November 21, 2008, Dabur India Limited (Dabur), one of the leading Fast Moving Consumer Goods (FMCG) companies in India, acquired a 72.15 percent stake in Fem Care Pharma Limited (FCPL) at a price of Rs. 2.03 billion. FCPL was a leading player in the Indian skin care market for women. Dabur said that it would subsequently make an offer to FCPL for an additional 20 percent stake as per the takeover regulations of the Securities and Exchange Board of India (SEBI).

The deal marked Dabur's foray into the premium skin care segment. Dabur also aimed to scale up its operations and fortify its presence in the growing FMCG industry...

Dabur's Acquisition of Fem Care Pharma*