Dabur acquires SA cosmetic trading firm Discaria

The Dollar Business Bureau

In an effort to boost South African local supply chain, fast moving consumer goods firm Dabur took over South Africa based cosmetics manufacture and trading firm Discaria Trading. However, the amount with regard to the acquisition is unknown.

The acquisition hints towards expansion of base of Dabur in the cosmetics industry of the South African market.

The company, in its BSE regulatory filing, stated that the fully-owned subsidiary Dabur International purchased 100% shares of Discaria Trading. Now, Discaria Trading is a subsidiary of Dabur India.

This marks Dabur’s foray into the South African market, which has huge potential. The company, presently, has manufacturing units in Egypt, Nigeria and caters to the demands of North and East African consumers.

After the acquisition of Discaria, Dabur has plans to establish a greenfield manufacturing unit in South Africa, revealed an official of the FMCG company.

He further revealed that Dabur will likely sell its haircare products of Namaste range, which serve the ethnic cosmetic demands under DermoViva skin care and Vatika hair care brands.

As the acquired company Discaria is already registered in South Africa, no approval was required, revealed Dabur International. However, the company did not disclose the amount involved in the acquisition process, which was completed on July 14, 2016.

Discaria Trading was constituted as a legal corporation in March 2015. The acquisition impacted the shares of Dabur in a marginal way. The shares of the homegrown FMCG company closed 0.55% up at about Rs. 313.35 per share on Monday, at BSE.