New Delhi:

This acquisition will give the company access to oral care brands of Balsara — Babool and Meswak — besides household products including Odonil (air freshener), Odopic (dish washer), Sanifresh (toilet cleaner) and Odomos (insect repellent).

As per the deal, which was approved by the board of directors of DIL, it will acquire 99.4 per cent stake in Balsara Hygiene Products, 100 per cent in Balsara Home Products and 97.9 per cent in Besta Cosmetics.

The company will seek shareholder approval for the deal by April. Till then, it will assume management control at Balsara.

The acquisition is being funded largely through internal accruals with only Rs23 crore of the entire amount being sourced through debt.

"Balsara has a strong range of brands that fit in well with our brand architecture and growth plans in India and abroad. Its range of oral care products will fit in largely under the Dabur brand name, further strengthening our existing position as the third largest player in the oral care market in India," Sunil Duggal Dabur, CEO, India told reporters at a press conference yesterday.

On whether the company''s appetite for acquisitions was satiated, he said that DIL was open to more acquisitions in areas where the company already operates — personal care, healthcare, foods and now household care.

According to him, Dabur expects 10 per cent growth immediately in revenues after this acquisition.

Balsara''s businesses recorded sales of Rs199.6 crore in 2003-04 with losses of about Rs8 crore, Duggal said, adding that the three acquired companies will become subsidiaries of DIL. These could be merged into DIL at a later date.

Balsara has three manufacturing sites at Kanpur, Silvassa and Baddi. Duggal said that there are no plans to rationalise manpower at Balsara companies, where the total headcount is 600.

DIL would be making significant investments in the acquired brands but Duggal declined to quantify these.

The exclusive financial advisor to this deal was the Mumbai-based Ambit Finance, while due diligence was carried out by PriceWaterhouse, AZB & Partners and Accenture.