Home-grown FMCG major Dabur India has received the National Company Law Tribunal (NCLT) approval for its merger with ayurvedic hair care brand Sesa Care. According to reports from The Economic Times and Rediff Moneynews, the NCLT, New Delhi Bench, sanctioned the Scheme of Amalgamation in its hearing held on September 24, 2026, marking a key milestone in the transaction first announced in October 2024. The order was issued on September 24, 2026, with an appointed date of April 1, 2026, making it binding on all stakeholders. The merger will complement Dabur's existing hair care portfolio and tap new growth opportunities in the premium Ayurvedic hair care segment. As per Dabur India, the merger is expected to strengthen Dabur's presence in the hair care segment and provide opportunities to expand Sesa Care by leveraging its distribution network, category expertise and international presence.
In October 2024, Dabur acquired a 51% stake in Sesa Care from existing shareholder True North, paying ₹12.59 crore at face value as part of the deal. The transaction valued Sesa Care's enterprise value at an estimated ₹315-325 crore, including ₹289 crore of debt secured by Dabur's corporate guarantee. The merger proposal required approvals from the boards of the companies involved, shareholders, creditors and relevant regulatory authorities wherever applicable. The full merger scheme for Sesa Care into Dabur was approved by its board in May 2025, followed by requisite approvals of Dabur India's equity shareholders and unsecured creditors at meetings convened pursuant to the directions of the NCLT on May 2, 2026, followed by approvals from relevant regulatory authorities. Under the Companies Act, a merger or amalgamation scheme becomes effective only after it receives approval from the National Company Law Tribunal. The merger will become effective after completion of the required statutory filings and other formalities under the scheme.
The merger is structured as a non-cash transaction via share-swap arrangement, where Dabur issues new equity shares at specific ratios for Sesa Care's Class A, Class B, and Cumulative Redeemable Preference Shares. Under the approved scheme, Dabur will issue 10 equity shares of ₹1 each for every 146,779 Class A shares of ₹10 each or every 244,860 Class B shares of ₹6 each in Sesa Care. Sesa Care represents the 3rd largest brand in the Indian Ayurvedic hair oil market, offering critical strategic expansion for Dabur into premium problem-solving hair care whitespace. The integration will enhance Dabur's market share in the premium Ayurvedic hair care category, which is an increasingly lucrative, margin-accretive segment. By integrating Sesa's premium formulation with Dabur's massive distribution network and international access, the company is well-positioned to drive substantial revenue and cost synergies, enhancing competitive strength against peers like Marico, HUL, and Emami.
Commenting on the development, Dabur India Limited Global Chief Executive Officer Mr. Mohit Malhotra said, "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." Dabur India Limited Executive Director and Group Head of Corporate Strategy Mr. Abhinav Dhall added that the integration aligns with their long-term strategy of strengthening their portfolio and tapping newer growth opportunities. The leadership emphasized their commitment to leveraging Dabur India's extensive distribution network, category expertise and presence in key international markets to expand Sesa Care's reach and unlock synergies from the combined business. As per Dabur India, the company will leverage its extensive distribution network, category expertise and presence in key international markets to expand Sesa Care's reach and unlock revenue and cost synergies from the combined business.
Dabur India shares closed at ₹386.95 per share on September 25, 2026, gaining ₹1.80 or 0.47% following the NCLT approval announcement. Dabur India Limited is one of India's leading FMCG companies, with products reaching eight out of every 10 Indian households. The company's portfolio includes four brands with ₹1,000 crore-plus revenue, alongside four brands with ₹500 crore revenue and 15 brands in the ₹100-500 crore range. The NCLT approval marks a key milestone in the transaction first announced in October 2024 and paves the way for the integration of Sesa Care with Dabur India, subject to completion of necessary statutory filings and other formalities.
