FMCG major Dabur India on Wednesday announced that it will acquire a 51 per cent stake in Badshah Masala Private Limited, which is engaged in the business of manufacturing, marketing, and export of ground spices, blended spices, and seasonings. This acquisition is in line with Dabur’s strategic intent to expand its Foods business to Rs 500 crore in 3 years and expand into new adjacent categories, the company said in a statement.
This also marks Dabur’s entry into the over Rs 25,000 crore branded spices and seasoning market in India.
Dabur is acquiring a 51 per cent stake in Badshah for Rs 587.52 crore, with the Badshah enterprise being valued at Rs 1,152 crore.
Announcing the acquisition, Dabur India chairman Mohit Burman said the Indian spices and seasoning category is a large and attractive market, and Badshah Masala is one of the key players in this space. Dabur’s investment in Badshah Masala, he said, will help expand this business and continue to provide unmatched quality products.
“This acquisition will accelerate our growth strategy as we continue to build our Foods business. We intend to leverage our international market presence to grow this business globally,” Burman added.
Dabur India Group Director PD Narang said the acquisition is expected to be completed within this fiscal. He as per the agreement, he said, Dabur will acquire the balance 49 per cent stake after 5 years.
Dabur India CEO Mohit Malhotra said branded spices market in the country is growing at healthy double digits, led by increasing consumption, upgradation from unbranded to branded, and growing preference for regional flavours across states. He said Dabur has an existing Foods portfolio and views ground and blended spices as a good addition to this portfolio.
“Badshah portfolio will gain from Dabur’s extensive distribution reach. We look forward to unlocking further synergies and market opportunities to capture the full potential of Badshah Masala,” the CEO said.
Badshah Masala’s Managing Director Hemant Jhaveri said he was delighted to enter into a strategic partnership with Dabur. Joining hands with Dabur, he added, will help drive the future growth potential of Badshah on a stronger trajectory. “This transaction will enable us to accelerate our growth by adding our products to Dabur’s broad portfolio to meet the needs of consumers across geographies,” he added.