This marks Dabur’s entry into the over Rs 25,000 crore branded spices and spice market. (file)
New Delhi:
Domestic fast moving consumer goods (FMCG) firm Dabur India today said it will acquire 51 per cent stake in Badshah Masala in a deal worth Rs 587.52 crore, foraying into the fast-growing spices and seasonings category.
The company has signed definitive transaction agreements to acquire 51 per cent stake in Badshah Masala Pvt Ltd, which is engaged in the manufacture, marketing and export of ground spices, blended spices and seasonings, a joint statement said.
“The acquisition is in line with the company’s strategic intent to foray into new adjacent categories in the food sector,” Dabur India said in a regulatory filing.
On acquisition cost, Dabur India said “51 per cent equity shareholding has been agreed upon at Rs 587.52 crore less proportionate debt as on closing date”, valuing Badshah Enterprises at Rs 1,152 crore.
While the remaining 49 per cent equity shares, Dabur said “are to be acquired after a period of 5 years.” With this acquisition, Dabur India aspires to “grow its food business to Rs 500 crore in three years and expand into new adjacent categories”, a company statement said.
It also marks Dabur’s entry into the over Rs 25,000 crore branded spices and spice market in India.
Subsequently, Dabur joined the league of other FMCG manufacturers such as Emami, Tata Consumer Products Ltd and ITC, which are already present in the spice market.
The Indian spice market, which is traditionally sold in open form, is gradually moving towards branded players with packaged products as consumers no longer have the time to grind spices at home and are facing issues of convenience and safety. Looking for.
Mohit Burman, Chairman, Dabur India said, “The Indian Spices and Spices category is a large and lucrative market. Badshah Masala is one of the key players in this segment. Our investment in Badshah Masala will help it expand this business and deliver unmatched quality. Will continue to provide products with Told.
Berman further added that “this acquisition will accelerate our growth strategy as we continue to build out our food business. We intend to leverage our international market presence to grow this business globally.” Established in 1958, Badshah Masala had a turnover of Rs 189.1 crore in the financial year 2021-22. Managed by the Jhaveri family, the company derives 82 per cent of its revenue from blended spices and has two manufacturing facilities located in Umargam, Gujarat.
Hemant Jhaveri, Managing Director, Badshah Masala said: “Joining hands with Dabur will help steer Badshah’s future growth potential on a strong trajectory. Our companies are a great fit. This transaction allows us to add our products to Dabur from our core. will enable accelerating growth.” Extensive portfolio to meet the needs of consumers across geographies.”
Dabur India Limited is the fourth largest FMCG company in India and had a revenue of Rs 10,888.68 crore in FY22. It is also a leading Ayurvedic and Natural health care company with a portfolio of over 250 Herbal/Ayurvedic products.
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