Dabur can buy out large cos: CEO

Beaming with its successful Rs 143 crore (Rs 1.43 billion) acquisition of Balsara group of companies, Dabur India on Thursday said takeover would be a significant part of its growth strategy as it had resources to acquire fairly  'large sized companies'.

"Acquisitions would form an important part of our growth strategy. However, it should fit our portfolio and serve to build on a strategic growth," Sunil Duggal, CEO Dabur India said.

Defining large companies as those having a turnover of Rs 200 crore (Rs 2 billion) to Rs 400 crore (Rs 4 billion), Duggal said there could be competition for such entities in home care sector from other FMCG majors and MNCs but Dabur would pitch in as and when it finds a suitable company.

"There is nothing hot now but we will always consider any such property... It  will  not be not easy as there will be intense competition as this sector is showing fast growth," Duggal said.

Dabur borrowed Rs 23 crore (Rs 230 million) for completing the Rs 143 crore Balsara deal. Duggal said the company hoped to become become virtually debt free by the end of current financial year.

"The business margins and healthy growth would soon make our cash position comfortable for any future acquisitions," he said adding that on such a balance sheet the company could leverage resources.