Mumbai: Marico Ltd, an Indian maker of hair-care products and cooking oil, may acquire companies at home and overseas as it seeks to boost business in Asian and African markets.
"Marico is focused on beauty and wellness and will look at opportunities in these segments," Chairman and Managing Director Harsh Mariwala said in an e-mailed response to Bloomberg questions.
"In India we are open to acquisitions in hair care, skin care, and healthy foods."
The maker of Parachute hair oil, which has bought businesses and brands in Southeast Asia and South Africa, may acquire hair care and skin care product makers overseas, Mariwala said, without naming any targets. Mumbai-based Marico more than doubled the percentage of revenue it earns from overseas in four years, according to Bloomberg data.
Competitors Dabur India Ltd. and Godrej Consumer Products Ltd. have also acquired companies overseas. Dabur bought Turkey's Hobi Kozmetik Group in July, while Godrej purchased companies including Argencos, a manufacturer of hair colour products, in Latin America.
Marico acquired an 85 per cent stake in Vietnam's International Consumer Products Corp, it said without disclosing the amount paid. Last year, the company purchased South African health-care brand Ingwe and the aesthetic skin care business of Singapore-based Derma Rx Asia Pacific Pte.
Marico reported overseas revenue of Rs6.6 billion ($148 million) in the year ended in March 2010, accounting for a quarter of its total sales, according to Bloomberg data. The company had cash and near cash items of Rs209.4 million and short-term investments of Rs1.6 billion at the end of last fiscal year, according to Bloomberg data.
Marico resumed production at its factories in Egypt which were closed because of the political unrest in the nation, Mariwala said in a telephone interview yesterday.
The company is still facing constraints in its supply and distribution networks, he said.
"We have set up some extra capacity in India, so if there is some disruption then we can supply from here," he said. "But that'll mean extra cost, because we get certain benefits if we supply from Egypt. So our margins get impacted if we supply from India."
As much as 70 per cent of Marico's production in the Middle East and North Africa region was affected by the turmoil in Egypt, Mariwala said March 3.
