Dabur-Sesa Care Merger Gets NCLT Approval
Ayurvedic hair care brand Sesa Care’s merger with Dabur India has received nod from NCLT. Dabur bought 51% of Sesa Care in October 2024 and had authorised the merger in May 2025. The deal is intended to boost Dabur’s hair care portfolio and provide cost and revenue synergies.
The merger between ayurvedic hair care brand Sesa Care and domestic fast-moving consumer goods giant Dabur India was approved by the National Company Law Tribunal (NCLT) on 25 September. Dabur stated in a statement that the combination will enhance their current hair care offerings and allow them to take advantage of new growth opportunities.
The board of directors of Dabur authorised a complete merger of Sesa Care into Dabur in May 2025, following Dabur's acquisition of a majority interest in Sesa Care in October 2024. According to Dabur, the acquisition, which was first announced in October 2024, has reached a significant milestone with the NCLT clearance. Additionally, it opens the door for Sesa Care and Dabur India to merge, provided that all required requirements, such as statutory filings, are fulfilled.
Why Merger Crucial for Dabur?
According to Dabur's global CEO Mohit Malhotra, the acquisition of Sesa Care is in line with the company's aim to strengthen its portfolio in the long run. In addition, this combination is opening the door to new avenues for growth for the brand. With Dabur India's vast distribution network, category knowledge, and access to important global markets, the firm plans to increase Sesa Care's visibility. Through these operational changes, the combined company will be able to realise cost and revenue synergies.
The necessary permissions for the scheme were previously granted by the appropriate regulatory bodies and then by the equity shareholders and unsecured creditors of Dabur India in meetings called in accordance with the NCLT's directives on May 2, 2026. A merger or amalgamation scheme cannot take effect until NCLT gives its approval, as stated in the Companies Act. Boards of directors, shareholders, creditors, and appropriate regulatory bodies must all provide their stamps of approval to the plan before it can go forward. In most cases, the scheme is given legal force and becomes binding on all stakeholders when the NCLT sanctions it.
Dabur Acquired 51% Stake in Sesa Care
The deal was first disclosed in October 2024, when Dabur bought 51% of Sesa Care's paid-up Cumulative Redeemable Preference Shares (CRPS) from True North, the current shareholder. After then, Sesa Care and Dabur India moved forward with the deal under their Scheme of Amalgamation. When Dabur announced the acquisition in October 2024, they said that Sesa was the third most popular Ayurvedic hair oil in India. The report also estimated that the Ayurvedic hair oil industry was worth INR 900 crore.
Delhi HC Puts FSSAI Order on Hold for Dabur
The Delhi High Court granted Dabur India a reprieve on August 7 by staying the ruling of the Food Safety and Standards Authority of India (FSSAI). The consumer goods company was prohibited from marketing its products with claims such as "100% Pure", "100% Natural", and "100% Purity Guaranteed" by the food regulator's order.
On first glance, the food regulator should have given Dabur a chance to be heard before passing the prohibitory order, according to Justice Amit Mahajan's bench. The plea filed by Dabur challenging the order given by the FSSAI on August 3rd was acknowledged by Justice Mahajan. In addition, the court ordered the agency to respond within 15 days. Until the next hearing on August 24th, the impugned order will remain subject to an interim stay.
