The acquisition of Hobi Kozmetik will allow Dabur to enter the Turkish market and increase its footprint in the surrounding area, according to the company.
“The acquisition offers Dabur an entry into an attractive new market like Turkey, and adds to our portfolio a host of international brands that enjoy pole position in their respective categories,” commented Dabur CEO Sunil Duggal.
“[It] is an important step towards further consolidating and expanding our already substantial presence in the Middle East and Africa and North Africa region,” added chairman Dr Anand Burman.
The deal is expected to be completed by the third quarter of 2010-11, it was said in a statement.
Hobi Kozmetik’s brands
Hobi Kosmetik manufactures various personal care products including hair care, skin care and baby care. According to Dabur, Hobi is a leader in the hair gel category in Turkey with a 35 per cent share of the market.
A range of skin and hair care products are marketed under the Hobby and New Era brands and the products are sold across 35 countries including North Africa and the Middle East.
“Hobi’s brands complement Dabur’s portfolio, categories, offering us a strong platform to enter newer product categories and markets,” said Duggal.
Turkish cosmetics and personal care market
According to the latest figures from market researcher Euromonitor, the Turkish market for beauty and personal care products grew 9.3 per cent between 2008-9 to reach a figure of $2591.4m.
Colour cosmetics, skin care and hair care witnessed the biggest growth, with all three recording increases of just over 10 per cent. Hair care represents the biggest sub-sector, with a value of $564.6m. Premium cosmetics, on the other hand, declined 4.6 per cent to $121.1m.
The top three brands by market share in Turkey are Avon, Gillette from Procter & Gamble and Beiersdorf’s Nivea, Euromonitor revealed.