New Delhi: In a deal worth Rs. 587.52 crores, domestic FMCG company Dabur India announced on Wednesday that it will purchase a 51% share in Badshah Masala, marking its debut into the quickly expanding spice and seasoning market.
According to a joint statement, the company has inked arrangements to buy a 51% stake in Badshah Masala Pvt Ltd, a company that produces, markets, and exports ground spices, blended spices, and seasonings.
“The acquisition is in line with the company’s strategic intent of entering into new adjacent categories in the food space,” Dabur India said in a regulatory filing.
Over the acquisition cost, Dabur India said “51 per cent equity shareholding has been agreed at Rs 587.52 crore less proportionate debt as on the closing date”, with the Badshah enterprise being valued at Rs 1,152 crore.
With this acquisition, Dabur India aspires to “expand its Foods business to Rs 500 crore in 3 years and expand into new adjacent categories,” said a company statement.
This also signals Dabur’s debut into the Indian market for branded spices and seasonings, which is worth over Rs 25,000 crore.
Following this, Dabur joins the group of FMCG manufacturers that are already active in the spices business, including Emami, Tata Consumer Products Ltd., and ITC.
As customers no longer have the time to grind spices at home and are seeking convenience and safety concerns, the Indian spice sector, which has historically been retailed in loose form, is progressively moving towards branded companies with packaged items.
“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,” Dabur India Chairman Mohit Burman said.
Burman further added that “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.”