Sesa is the third largest company in the Ayurvedic hair oil segment.
The country’s leading FMCG company Dabur India on Wednesday informed about its big plan to expand its Ayurvedic business. Dabur said it will acquire Ayurvedic personal care product maker Sesa Care for an enterprise value of Rs 315-325 crore. Dabur said in a filing to the stock market exchange today that the acquisition of Sesa Care will help the company expand into the Rs 900 crore Ayurvedic hair oil market.
Dabur told the complete plan to buy Sesa
“The enterprise value of Sesa Care is estimated to be between Rs 315-325 crore,” Dabur said. This also includes a loan of Rs 289 crore.” Dabur has entered into an agreement to purchase 51 percent stake from Sesa Care shareholder True North at a face value of Rs 12 crore. Equity shares will be exchanged for the remaining 49 per cent stake in Sesa.
Sesa is the third largest company in the Ayurvedic hair oil segment.
“The decision regarding exchange of shares for stake and the remaining 49 per cent cumulative redeemable preference shares in Sesa will be taken at the time of filing the plan of merger based on the valuation report,” the company said. Dabur CEO Mohit Malhotra said that this merger is in line with the company’s long-term plan to strengthen its portfolio and take advantage of new growth opportunities. Sesa Care, the third largest company in the Ayurvedic hair oil segment, had an integrated turnover of Rs 133.3 crore in the financial year 2023-24.
Decline in company’s net profit and revenue
Let us tell you that Dabur has today released the results of the second quarter of the current financial year. The company’s net profit declined by 17.65 percent to Rs 417.52 crore in the July-September quarter. Whereas in the second quarter of last year, Dabur’s net profit was Rs 507.04 crore. Apart from this, the operational revenue of the company also declined by 5.46 percent to Rs 3028.59 crore in the second quarter of the current financial year, which was Rs 3203.84 crore in the second quarter of the last financial year.
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