Target $50m revenue from South Africa biz in 5 years: Dabur CEO

Homegrown FMCG major Dabur said it will acquire the personal care, haircare and creams businesses of South Africa based-CTL group of companies in a deal valued at about Rs 10 crore. The acquisition marks Dabur's foray into the South African personal care market, the company said in a statement.

Dabur South Africa has entered into an agreement to acquire the South African business of development, manufacturing, packaging and sale of personal care products of CTL Contracting Proprietary Limited, it added. Besides, Dabur South Africa would also acquire certain equipment of Carbotec Laboratories and immovable property from CTL Management and Personnel Services.

The company chose to take the acquisition route in South Africa as setting up a greenfield  facility would have come at an additional expenditure, said Dabur’s Chief Executive Sunil Duggal. He added that revenues from South Africa stand at USD 10 million and the company is targeting USD 50 million in the next five years.

Duggal said that even though it was relatively smaller acquisition, the business is very much scalable.