The National Company Law Tribunal (NCLT), New Delhi Bench, officially approved the scheme of amalgamation of Sesa Care Private Ltd. with Dabur India. The sanction, granted during a hearing on September 24, 2026, marks a significant milestone for the consumer goods giant.
Following the announcement, shares of Dabur India Ltd. experienced a marginal dip in early Friday trading, reflecting immediate market reactions to the news.
Strategic Integration for Ayurvedic Growth
The merger, initially announced in October 2024, is set to integrate Sesa Care's premium Ayurvedic hair care brand into Dabur's extensive portfolio. Sesa Care is well-known for its 'Sesa' brand, which operates within the specialized Ayurvedic segment.
Dabur India Global CEO Mohit Malhotra commented, "The NCLT approval is an important milestone in our journey with Sesa Care. Sesa Care is a premium brand with strong Ayurvedic credentials and complements our existing hair care portfolio well. We see significant potential in bringing the two businesses together and building Sesa Care into a stronger and larger brand."
This move aligns with Dabur's long-term strategy to strengthen its product offerings and explore new growth avenues. Abhinav Dhall, Dabur India Executive Director and Group Head of Corporate Strategy, highlighted the company's intent to leverage its vast distribution network, category expertise, and international market access. This is expected to expand Sesa Care's reach and unlock substantial revenue and cost synergies for the combined entity.
Merger Timeline and Approvals
- October 2024: Merger first announced.
- Prior to NCLT sanction: Dabur India had acquired 51% of the paid-up Cumulative Redeemable Preference Shares (CRPS) of Sesa Care from its existing shareholder, True North.
- May 2, 2026: The scheme received requisite approvals from Dabur India's equity shareholders and unsecured creditors during meetings convened under NCLT directions.
- Subsequent Approvals: Relevant regulatory authorities also provided their consent.
- September 24, 2026: NCLT sanctions the merger.
The merger's full effectiveness is contingent upon the completion of necessary statutory filings and other conditions stipulated under the approved scheme.