Dabur Acquires Majority Stake In Badshah Masala This acquisition is in line with Dabur's strategic intent to expand its foods business to INR 500 crore in three years and expand into new adjacent categories
By Shrabona Ghosh •
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Dabur India Limited has signed definitive transaction agreements to acquire 51 per cent shareholding of Badshah Masala Private Limited, engaged in the business of manufacturing, marketing and export of ground spices, blended spices and seasonings, on Wednesday. This acquisition is in line with Dabur's strategic intent to expand its foods business to INR 500 crore in three years and expand into new adjacent categories. This also marks Dabur's entry into the over INR 25,000 crore branded spices and seasoning market in India.
Dabur is acquiring 51 per cent stake in Badshah for INR 587.52 crore, less proportionate debt as on the closing date, with the Badshah enterprise being valued at INR 1,152 crore.
"The Indian spices and seasoning category is a large and attractive market. Badshah Masala is one of the key players in this space. Our investment in Badshah Masala 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," said Mohit Burman, Dabur India Ltd Chairman.
Branded Spices market in India is growing at healthy double digits, led by increasing consumption, upgradation from unbranded to branded and growing preference for regional flavours across states. The market is dominated by regional players and holds significant potential for growth in the future.
"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," said Mohit Malhotra, CEO, Dabur India Ltd.
"We are delighted to enter into a strategic partnership with Dabur. Dabur stands for Trust and Heritage and joining hands with Dabur will help drive the future growth potential of Badshah on a stronger trajectory. Our companies are a great fit. 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," said Hemant Jhaveri, Managing Director, Badshah Masala Private Limited.
Dabur India's FMCG portfolio today includes nine distinct Power Brands: Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara and Dabur Lal Tail in the Healthcare space; Dabur Amla, Dabur Red Paste and Vatika in the personal care category and Real in the Food and beverages space. During FY 2021-22, Dabur recorded consolidated revenue from operations of INR 10,889 crore and consolidated Profit after Tax of INR 1,742 crore.
