Fast moving consumer goods maker Dabur India Ltd has struck a deal to buy the business undertaking of Delhi-based Northern Aromatics Ltd's (NAL) located at Pantnagar in Uttarakhand for Rs 15 crore ($2.40 million) on a slump-sale basis, as per a stock market disclosure. The agreement has been executed on November 18, 2013.
NAL is an existing vendor of Dabur. The facility will be used to manufacture food products, ayurvedic medicines and cosmetics.
This unit deals in tooth powder/ayurvedic extracts & intermediate confectionery and perfumery compounds/synthetic essential oil. It manufactures glucose, shampoos and shilajit for Dabur.
NAL, which has its corporate office at Ghaziabad in Delhi-NCR, was incorporated in 1979. It has manufacturing operations at three locations: Sahibabad, UP; Baddi in HP and Pantnagar in Uttarakhand.
According to its website the firm has an annual turnover of $15 million through presence in product categories like fragrances, flavours and essential oils.
Dabur India has exposure in consumer products and food businesses (after the merger of Dabur Foods with the parent) besides retail. Most of its revenues come from the consumer care unit, which includes both beauty and healthcare products.
This is its first domestic M&A deal in over two years. The company was particularly active in overseas acquisitions during 2010.
Over a year, it has attracted Baring PE India to build a stake for around Rs 350 crore.
(Edited by Joby Puthuparampil Johnson)