Fem to be Dabur’s 5th flagship brand
The Rs 2,800-crore Dabur India is set to turn skin-care brand Fem into its fifth flagship brand
By ET Bureau |
NEW DELHI: The Rs 2,800-crore Dabur India is set to turn skin-care brand Fem into its fifth flagship brand. The company already has four flagship brands -- Dabur as the master brand for natural healthcare products, Vatika for premium personal care, Hajmola for digestives and Real for fruit-based beverages.
Speaking to ET post the complete acquisition of Fem Care Pharma on Thursday, the company���s CEO Sunil Duggal told ET: ���With Fem���s acquisition, we have become the second biggest skin-care company in the country.��� While Hindustan Unilever is the biggest in skin-care riding on Fair & Lovely and Pond���s, Emami is the third biggest in skin-care.
Dabur���s bullishness on the segment is understandable -- the skin-care category, estimated at about Rs 2,500 crore, is the fastest growing within the personal care space. Industry estimates suggest the mainstream skin-care segment to be growing at anywhere between 20-25%.
Dabur is now phasing out the limited presence Vatika has in the skin-care segment to focus the brand entirely on hair care. On the other hand, Fem will be positioned as a specialised skin-care brand.
This is in contrast to the strategy Dabur had adopted at the time of its previous acquisition ��� when it had acquired Balsara in 2005 for about Rs 143 crore. ���When we acquired Balsara, we had absorbed brands like Babool and Meswak under our oral-care portfolio. We don���t intend to do the same in case of Fem, which will have an independent equity,��� Mr Duggal said.
In November last year, Dabur India had earlier acquired 72.15% of Fem for Rs 203.7 crore in an all-cash deal. After obtaining regulatory approvals, Dabur acquired additional 20% stake for Rs 54 crore through an open offer late last month. With the completion of this transaction, Fem Care Pharma is now a 100% subsidiary of Dabur India.
Speaking to ET post the complete acquisition of Fem Care Pharma on Thursday, the company���s CEO Sunil Duggal told ET: ���With Fem���s acquisition, we have become the second biggest skin-care company in the country.��� While Hindustan Unilever is the biggest in skin-care riding on Fair & Lovely and Pond���s, Emami is the third biggest in skin-care.
Dabur���s bullishness on the segment is understandable -- the skin-care category, estimated at about Rs 2,500 crore, is the fastest growing within the personal care space. Industry estimates suggest the mainstream skin-care segment to be growing at anywhere between 20-25%.
Dabur is now phasing out the limited presence Vatika has in the skin-care segment to focus the brand entirely on hair care. On the other hand, Fem will be positioned as a specialised skin-care brand.
This is in contrast to the strategy Dabur had adopted at the time of its previous acquisition ��� when it had acquired Balsara in 2005 for about Rs 143 crore. ���When we acquired Balsara, we had absorbed brands like Babool and Meswak under our oral-care portfolio. We don���t intend to do the same in case of Fem, which will have an independent equity,��� Mr Duggal said.
In November last year, Dabur India had earlier acquired 72.15% of Fem for Rs 203.7 crore in an all-cash deal. After obtaining regulatory approvals, Dabur acquired additional 20% stake for Rs 54 crore through an open offer late last month. With the completion of this transaction, Fem Care Pharma is now a 100% subsidiary of Dabur India.
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Mr Duggal said Fem would straddle various price points and that the company may rationalise its portfolio. Apart from fairness bleach, Fem has presence in hair removal and liquid soaps. Start a SIP with as low as ₹500 with ET Money App!
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