Dabur, a consumer goods maker, is buying the personal care business of CTL Group of South Africa. The value of the deal is pegged at Rs 10 crore.
Following the news, the Dabur India Limited stock was trading at Rs 291.85 at around 10.48 am on Wednesday, up 0.62 percent from its previous close on the Bombay Stock Exchange.
The company's latest acquisition would further mark its entry into the South African market. "Dabur South Africa has entered into business agreements with CTL group of companies to acquire South African Business of Development, manufacturing, packaging and sale of personal care products," the company said in a regulatory filing to the stock exchange.
In a statement to Moneycontrol, Dabur's Chief Executive Sunil Duggal said that revenues are pegged at about $10 million and that the manufacturer of real juices and Vatika shampoo is targeting revenues worth $50 million in the next five years.
This is not the first acquisition for the company in the African continent. Four months ago, Dabur India acquired Discaria Trading, a South African cosmetics manufacturing and trading firm. Although the acquisition was small, it gave Dabur entry into the market.
As of the financial year that ended on March 31, 2016, Africa accounted for about 22 percent of Dabur's revenue from international markets. Together it accounts for about 32 percent of consolidated revenues, Mint reported.
In Africa, the company also has manufacturing facilities set up in Nigeria and Egypt.