Dabur India Ltd on Monday announced the acquisition of Hobi Kozmetik Group, a Turkish personal care products company, for Rs 323.78 crore. Its overseas subsidiary, Dabur International Ltd, acquired 100 per cent stake in three Hobi Group firms — Hobi Kozmetik, Zeki Plastik and Ra Pazarlama.

Hobi Kozmetik is the market leader in the hair gel category with 35 per cent share, and markets a wide range of hair care and skin care products under the ‘Hobby' and ‘New Era' brands. Its products are sold across 35 countries.

The transaction is likely to be completed by the third quarter of 2010-11. It will fund the acquisition through internal accruals and bridge financing. "The acquisition offers Dabur an entry into an attractive new market like Turkey. Hobi's brands complement Dabur's portfolio, offering us a strong platform to enter newer product categories and markets," Dabur India CEO Sunil Duggal said.

Earlier, Dabur had acquired skin care products maker Fem Care Pharma in 2008 and Balsara Hygiene and Home Products in 2005.

Hobi's hair care products will help Dabur take on India market leader Parachute. Dabur's Vatika is No.2. It has been leveraging its skin care portfolio through Fem and Uveda which are doing well, according to analysts, and Hobi will add to the push.