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October 30, 2024

Proposed Merger of Sesa Care with Dabur India

Press release

New Delhi, October 30th, 2024: Dabur India Limited today announced that it has entered into an agreement to merge Sesa Care Private Limited (Sesa), subject to regulatory approvals. As part of the transaction, Dabur will acquire 51% of the total paid up Cumulative Redeemable Preference Shares (CRPS) of Sesa from its existing shareholder, True North (a private equity fund), for Rs 12.59 Crore at face value.

The enterprise value is estimated to be in the range of Rs 315-325 Crore, including debt of Rs 289 Crore, which will be backed by the Corporate Guarantee of Dabur.

Sesa is a leading brand in the Ayurvedic hair care market with a strong brand equity.

“Dabur is a market leader in the hair oils category. The proposed merger of Sesa will bring to Dabur a premium brand with strong credentials around Ayurveda that will complement our existing portfolio and strengthen our presence in the hair care category. We look forward to the exciting opportunities this deal brings,” Dabur India Limited Chairman Mr. Mohit Burman said.

“This merger aligns with our long-term vision to consolidate our portfolio and tap into newer growth opportunities. By integrating Sesa's range of Ayurvedic hair care products and expertise with Dabur’s extensive distribution network, category expertise, and access to key international markets, we aim to grow brand Sesa and deliver enhanced value to our stakeholders in addition to revenue and cost synergies,” Dabur India Limited Chief Executive Officer Mr. Mohit Malhotra added.

“Sesa allows us to fill a strategic whitespace. We will continue to actively look for additional targets in both traditional and new age areas” said Mr. Abhinav Dhall, who recently joined Dabur India Limited as Executive Director and Group Head of Corporate Strategy after spending several years in private equity and strategy consulting.

Today's announcement is the first step, and the merger of Sesa into Dabur is envisaged to be filed with the appropriate authorities over next few months and shall be subject to the receipt of necessary statutory and regulatory approvals. The share swap for the equity shares and remaining 49% CRPS in Sesa will be decided at the time of filing scheme of merger, basis the valuation reports.

Sesa Care Private Limited CEO Mr. Sandeep Rai said: "With this proposed merger, our goal is to create a stronger, more resilient business that will provide even greater opportunities for growth in the future.”

Ambit Private Limited was the advisor to the transaction.

For further information, Please Contact:

Byas Anand

Head-Corporate Communications, Dabur India Limited

+91-9811994902

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