Flash Note: Dabur acquires 30 Plus, we maintain Accumulate with a TP of `115
The Deal: Dabur India entered into an agreement with Mumbai‐based Ajanta Pharma Limited to acquire Ajanta’s over‐the‐counter energizer brand ’30‐Plus’. Financial details pertaining to the deal are unknown though according to some news sources the deal is pegged at less than `50cr.
About Namaste Laboratories LLC: Launched in 1990 by Ajanta pharmaceuticals, 30‐Plus is a herbal energizer capsule that targets the thirty plus males. It became an instant hit among consumers in India as it was endorsed by Bollywood veterans like Jeetendra. The brand 30- Plus is one of the oldest and strongest brands in the herbal energizer health care category in India. 30- Plus has been Ajanta’s flagship brand once, which gave the company a national footprint.
Our take on the deal: According to a Euromonitor report, the size of herbal supplements category in India in 2010 was at ~`800cr which grew at 12% CAGR from 2005-2010. Dabur’s CHD contributed 7.5% to the sales and grew at 13% in FY2011. The key brands in this category are Pudin Hara, Honitus, Shilajit and Dashmularishta. We believe that the brand 30-Plus would add value to the bouquet of health centered products of Dabur and go with the company’s strategy “to build capacity on the OTC health care business.” The financial implication due to the deal on the company is negligible considering the assumed deal size.
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