Acquisition of Controlling Stake in Fem Care
Acquisition of Fem Care Pharma Ltd- Investor Communication
Dabur India Limited has entered into definitive agreements to acquire majority stake of 72.15% in Fem Care Pharma Ltd (FCPL).
Dabur to make an open offer for additional 20% stake in FCPL.
The transaction values FCPL at an equity value of Rs 282.4 crores.
Fem has entrenched equities in fairness bleach category; Market leader with over 60% market share.
The transaction gives Dabur entry into high growth skin care market with an established brand ‘FEM’ and strong product capabilities in skin care.
Good Strategic fit: significant revenue and cost synergies for Dabur and FCPL. Acquisition of Fem Care Pharma Ltd- Investor Communication
Fem Care Pharma Limited was promoted in 1982.
Listed on Bombay Stock Exchange since 1994.
The company markets bleach, liquid soaps and hair removing creams under the ‘Fem’ brand. In house R&D : innovative products like Oxybleach (premium cream bleach), Fem Stratum (hair conditioner), Saka (men’s bleach) and Botanica (skin firming & anti wrinkle cream) introduced in the last few years. Has a range of fabric softeners and stain removers under the brand ‘Bambi’. Markets a range of pharmaceutical products in dermatology and other segments. Distribution reach covering 1,25,000 retail outlets; also covers 25,000 parlours directly. Manufacturing facilities in Nasik and Baddi (HP); Baddi unit which was set up in 2006 enjoys both excise and IT benefits. Exporting to UAE, Yemen, Oman, Maldives, Mauritius, Malaysia, Sri Lanka, Bangladesh, Myanmar and Nepal. Owns the brand ‘Jaquline’ which markets women care products (bleach and hair removing creams) in US and Middle East. Highly profitable company with gross margins of over 60% Acquisition of Fem Care Pharma Ltd- Investor Communication
•Speciality Chemicals Division is proposed to be hived off before completion
•FCPL has a 100% subsidiary viz. Jaquline Inc which owns the brand ‘Jaquline’
Acquisition of Fem Care Pharma Ltd- Investor CommunicationCONSUMER DIVISION
9FEM Bleaches: Category Leader with 60% share
9Fem Hair Removing Cream: One of the top three players
9Fem liquid soap: Early entrant having good brand equity
9Cool range liquid soaps : premium range of hand soaps
9Bambi range of Household products: Specialty fabric care products
9Botanica Skin firming & anti wrinkle cream: Positioned in fast growing skin care category
9Saka Men’s Bleach: bleach for men
9Fem Stratum: Innovative herbal conditioner for post colour protection
9Jaquline: Range of premium women care products Acquisition of Fem Care Pharma Ltd- Investor CommunicationPHARMA PRODUCTS
9Aloe derm-contains aloe juice and vitamin E and acts as a moisturizer and wound healer
9Jula-a complete skin nutrition
9Keratex-promotes growth of hair, retains natural blackness
9Restoderm-For complicated skin infections
9Femnicol A-Anti Acne
9Dermotriad-multi-ingredient formulation for skin infection.
9Climdan-prevents dandruff formation
9Manexil gel-effectively increases re- growth of hair
9 Nozee-non-drowsy nasal decongestant Acquisition of Fem Care Pharma Ltd- Investor Communication
DIL has signed an agreement to acquire 72.15% stake from the existing promoters.
The transaction values FCPL at an equity value of Rs 282.4 crores.
Dabur to make an open offer to acquire further 20% of the FCPL’s equity share capital.
Specialty chemicals division and some other investments will be bought over by promoters at book value or market value whichever is higher.
Acquisition to be funded through internal accruals of Dabur India Ltd. Acquisition of Fem Care Pharma Ltd- Investor CommunicationRevenue synergies Cost synergies
9Brand provides access to DIL into
9Combined business to unlock fast expanding skin care market at synergies : Sales & Distribution, mass price points Marketing, Supply Chain, Sourcing & Manufacturing
9Higher reach/penetration for FCPL portfolio through DIL’s distribution
9FCPL’s Baddi unit synergistic with DIL’s own skin care plans
9Potential for extending FEM brand
9Greater efficiencies possible into other related skin care in trade and distribution categories.
9 Combined Adpro spends can
9Potential in International markets: be leveraged to reduce media FEM & Jaquline brands have presence in GCC/Middle east markets which can be expanded.
9FCPL’s R&D knowledge in skin care to supplement domain
9FCPL’s parlour outreach to be knowledge for DIL leveraged for promoting Dabur’s personal care portfolio. Acquisition of Fem Care Pharma Ltd- Investor Communication
Published results : Consolidated P&L Account
Net Sales Expenditure: Material Cost EBITDA Margin (%) Profit Before tax Exceptional Item Profit After Tax after Exceptional Items Profit After Tax after Minority Interest H1FY09 results are for period ending 30th September 2008Acquisition of Fem Care Pharma Ltd- Investor Communication
Consolidated Balance sheet as on 31st March 2008
Rs Crores Liabilities Equity Capital Assets Net Fixed Assets Acquisition of Fem Care Pharma Ltd- Investor CommunicationAcquisition of Fem Care Pharma Ltd- Investor Communication
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