Personal care and food products maker Dabur India Ltd is scouting for firms in U.S., Europe, U.A.E. and parts of Africa for acquisitions and has earmarked $250-$500 million. It is focussing on the MENA region (Middle-east, Egypt, Nigeria and Africa) mainly UAE and Africa and also looking at companies in Europe and the U.S. where it doesn't have much of a footprint.
The funds for the acquisition are expected to be met from the internal accruals and debt. Dabur's international business contributes about 15 percent of overall revenues and it expects this segment to grow about 50 percent year-on-year.
Its net profit may rise 25 percent on revenue growth of 22-25 percent in 2009-10 helped by new brand launches and the recent acquisition of Fem Care. Net profit margins for the current fiscal may improve by 3-4 percent over last year, helped by the combination of portfolios with its recent acquisition of Fem Care.
Dabur also plans to invest 250-500 million rupees over two years on expanding its retail store network in the country. The firm plans to add 4-5 stores this fiscal and 10 stores each year from the next fiscal.