Dabur India Board Approves Sesa Care Amalgamation

In a strategic corporate development, Dabur India Limited has announced the amalgamation of Sesa Care Private Limited into its business framework. Approved by its Board of Directors on 26 May 2025, this merger aligns with Dabur’s long-term vision of strengthening its product portfolio, especially in the ayurvedic hair care segment. The proposed scheme, under Sections 230 to 232 of the Companies Act, 2013, is subject to regulatory and shareholder approvals.

Amalgamation of Sesa Care with Dabur 

The amalgamation of Sesa Care with Dabur India is rooted in enhancing synergies and streamlining operations. Dabur, a leader in the FMCG space with a dominant presence in the hair oil category, seeks to incorporate Sesa, the third-largest player in the ayurvedic hair oil segment, into its brand portfolio. This strategic move fills a gap in Dabur's current offerings by integrating a premium brand that resonates with ayurveda-centric consumers.

With this merger, Dabur plans to expand Sesa’s reach to a broader consumer base both within India and overseas, leveraging its established distribution network, technical expertise, and supply chain capabilities. The integration aims to unlock long-term value for all stakeholders by combining resources such as marketing, management, research, and operational infrastructure.

Financial and Structural Implications

As of 31 March 2025, Dabur India Limited reported consolidated assets of ₹16,232.28 crore, with a turnover of ₹12,563.09 crore, whereas Sesa Care's consolidated assets stood at ₹282.33 crore with a turnover of ₹109.33 crore. Despite Sesa Care’s negative net worth, the merger is expected to be value-accretive due to potential cost optimisations and improved financial efficiency.

No cash consideration is involved; instead, the shareholders of Sesa Care will receive Dabur equity shares based on predetermined exchange ratios. The shareholding pattern of Dabur will witness only a marginal change post-merger, with promoter holdings shifting slightly from 66.22% to 66.21%. All shares held by Dabur in Sesa Care will be cancelled upon the merger's effectiveness, and Sesa Care will be dissolved without winding up.

Read More: Dabur to Exit Non-Performing Products, Focus on Growth and Premium Brands.

Dabur Share Performance

As of May 27, 2025, at 1:25 PM, Dabur share price is trading at ₹481.65 per share, reflecting a surge of 0.28% from the previous day's closing price. Over the past month, the stock has declined by 0.11%. 

Conclusion

The proposed amalgamation between Dabur India and Sesa Care signifies a calculated expansion in the ayurvedic hair care market. By integrating a complementary brand, Dabur aims to fortify its leadership while generating efficiencies across operations and capital management. The merger reflects Dabur’s ongoing strategy to deliver sustainable growth and shareholder value through innovation and consolidation.
 

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