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FMCG major Dabur India has announced the acquisition of a majority stake in spices major Badshah masala.
For the unversed, Badshah Masala is an Indian spices company that began operations in 1958 in Gujarat. It is one of the most well-known spices brands in India and offers aromatic, high-quality spices. Its products include basic spices such as Turmeric, Chili, and Cumin powder & several blended spices like Chicken Masala, Chat Masala, Curry Masala, etc. Around a third of its sales are from exports as it has made a place for itself in the international market.
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Dabur has acquired 51% of the company for a consideration of Rs 587.52 crores less proportionate debt. This values the spices company at Rs 1,152 crores. The company has announced that the acquisition of the 51% will be completed before the end of the current fiscal while the balance of 49% will be done after 5 years.
“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, MD of Badshah Masala.
“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, Chairman of Dabur India.
This acquisition marks the foray of Dabur India into the Rs 25,000 crores Indian spices market. It is also in line with the FMCG giant's plans to expand its food business to Rs 500 crores in three years and also expand into adjacent products.
Shares of Dabur India currently trade at around Rs 547.80 per share, up 3%.
Article by Aman Agarwal.
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