Dabur India Ltd, run by the Billionaire Burman family, is going to spend big bucks in two years to acquire the slowest growing companies and boost sales again. Company CEO Mohit Malhotra gave this information in an interview.
Mohit Malhotra said that he is exploring options in health care, personal care and food items. Dabur wants to set targets and buy companies with 1 billion to 10 billion rupees. Malhotra said, "We have prepared a war chest to buy companies and for this the company has an amount of about 35 billion rupees ($ 490 million). He said that with the recession, some deals are cheap. Those who were very expensive earlier.
Worst condition in last 6 years
Several companies, including Dabur, India's largest car maker Maruti Suzuki Ltd. and biscuit manufacturer Britannia Industries Ltd., have seen the slowest growth in the last six years. Because cuts in the purchase of the world's second most populous consumers were found, which is the lowest since at least 2014.
The company is going to expand the company to remote parts of the country to reach more and more customers. Malhotra said that it is going to expand its rural network to cover 55 thousand villages by March next year and about 44 thousand villages by April-March 2021 next year.
Search for such companies
Malhotra said, "We are hoping to buy the kind of companies that take us to rural India as well as help us in bridging the gap between urban and rural image." In the midst of a slowing economy, Dabur started selling small packets of hair oil, toothpaste and fruit drinks to customers to turn to cheaper brands.
