Dabur’s Sesa Care merger gets NCLT approval

The National Company Law Tribunal (NCLT) has granted approval for the merger between ayurvedic hair care brand Sesa Care and FMCG company Dabur India, marking a significant step towards the integration of the two businesses. In October 2024, Dabur acquired a 51% stake in Sesa Care from private equity fund True North for Rs 12.59 crore, with the transaction valuing Sesa Care's enterprise at an estimated Rs 315-325 crore, including Rs 299 crore of debt backed by Dabur's corporate guarantee.

The merger aims to bolster Dabur's hair care portfolio and open up new growth avenues. The board of Dabur approved the scheme to merge Sesa Care into Dabur India in May 2025. The NCLT's approval is a critical milestone in the transaction, which was initially announced in October 2024, and will facilitate the eventual integration of Sesa Care with Dabur India, pending the completion of necessary statutory filings and other formalities.

The merger scheme had previously received the necessary approvals from Dabur India's equity shareholders and unsecured creditors at meetings called under NCLT directions on May 2, 2026, as well as from relevant regulatory authorities. As per the Companies Act, the merger scheme will become effective upon NCLT approval and the completion of the required statutory filings and formalities.

Dabur's CEO, Mohit Malhotra, highlighted that the integration aligns with the company's long-term strategy of bolstering its portfolio and tapping into new growth opportunities. The merger is expected to enable Dabur to leverage its extensive distribution network, category expertise, and global market presence to expand Sesa Care's market reach, while simultaneously pursuing revenue and cost synergies from the combined business.