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You are here: Home > Collections > Babool

Fem to be Daburs 5th flagship brand

ET Bureau Jun 26, 2009, 01.52am IST

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NEW DELHI: The Rs 2,800-crore Dabur India is set to turn skin-care brand Fem into its fifth flagship brand. The company already has four flagship brands -- Dabur as the master brand for natural healthcare products, Vatika for premium personal care, Hajmola for digestives and Real for fruit-based beverages. Speaking to ET post the complete acquisition of Fem Care Pharma on Thursday, the company's CEO Sunil Duggal told ET: "With Fem's acquisition, we have become the second biggest skin-care company in the country." While Hindustan Unilever is the biggest in skin-care riding on Fair & Lovely and Pond's, Emami is the third biggest in skin-care.

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Dabur's bullishness on the segment is understandable -- the skin-care category, estimated at about Rs 2,500 crore, is the fastest growing within the personal care space. Industry estimates suggest the mainstream skin-care segment to be growing at anywhere between 20-25%. Dabur is now phasing out the limited presence Vatika has in the skin-care segment to focus the brand entirely on hair care. On the other hand, Fem will be positioned as a specialised skin-care brand. This is in contrast to the strategy Dabur had adopted at the time of its previous acquisition when it had acquired Balsara in 2005 for about Rs 143 crore. "When we acquired Balsara, we had absorbed brands like Babool and Meswak under our oral-care portfolio. We don't intend to do the same in case of Fem, which will have an independent equity," Mr Duggal said. In November last year, Dabur India had earlier acquired 72.15% of Fem for Rs 203.7 crore in an all-cash deal. After obtaining regulatory approvals, Dabur acquired additional 20% stake for Rs 54 crore through an open offer late last month. With the completion of this transaction, Fem Care Pharma is now a 100% subsidiary of Dabur India. Mr Duggal said Fem would straddle various price points and that the company may rationalise its portfolio. Apart from fairness bleach, Fem has presence in hair removal and liquid soaps.

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