Dabur weighs acquisitions to expand across India, SE Asia amid competition

On the back of its $71 million purchase of spice producer Badshah Masala Pvt Ltd. in October, the 139-year-old firm, which sells traditional Ayurvedic medicine and herbal products including toothpaste and shampoo, is evaluating other targets in health, food and personal care in those markets, Chief Executive Officer Mohit Malhotra said.

“There are a lot of opportunities,” Malhotra, 53, said in an interview at Dabur’s headquarters in the New Delhi satellite city of Ghaziabad. “The valuations as relative to what they were in the past have become more reasonable now.” He declined to name any brands or firms on his radar.

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The expansion comes as Dabur faces intensifying competition from deep-pocketed rivals — including global consumer titan Unilever Plc — which are swooping in on upstart Indian brands. Powerful Indian conglomerates led by two of Asia’s richest men, Mukesh Ambani and Gautam Adani, also have ambitious plans to scale up in the household retail space, while Tata Consumer Products Ltd. is looking to bulk up its portfolio through acquisitions.

Last year, Hindustan Unilever Ltd. purchased wellness brand Zywie Ventures Pvt. and a minority stake in health supplement maker Nutritionalab Pvt., while Adani Wilmar Ltd. made acquisitions including the Kohinoor ready-made curries and rice label from McCormick Switzerland.