FMCG major Dabur India acquires a 51 per cent stake in Badshah Masala Private Limited. Announcing that it has signed definitive transaction agreements, Dabur, on Wednesday, said the acquisition is in line with its strategic aim to expand its foods business to Rs 500 crore in the next three years as well as getting into new adjacent categories. In addition, after five years, Dabur will acquire the remaining 49 per cent shares of Badshah Masala Private Limited, which is engaged in the business of manufacturing, marketing and export of ground spices, blended spices and seasonings.
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In a statement, the company said, “Dabur is acquiring 51 per cent stake in Badshah for Rs 587.52 crore, less proportionate debt as on the closing date, with the Badshah enterprise being valued at Rs 1,152 crore.” This takeover also marks Dabur’s entry into the spices and seasoning market in India.
Dabur India chairman, Mohit Burman said, “This acquisition will accelerate our growth strategy as we continue to build our food business. We intend to leverage our international market presence to grow this business globally”, reported Financial Express.
Meanwhile, Managing Director, Badshah Masala Private Limited, Hemant Jhaveri views the acquisition as a way to accelerate their brand’s growth. According to Jhaveri, by adding the products of Badshah Masala to Dabur’s broad portfolio, they will be able to meet the needs of consumers across geographies.
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Currently, Dabur has an existing foods portfolio and Dabur India’s Chief Executive Officer, Mohit Malhotra views their takeover of Badshah Masala as a good addition to their food and beverage space. On the other hand, he adds that “Badshah portfolio will gain from Dabur’s extensive distribution reach.”
Dabur India’s FMCG portfolio includes, Dabur Chyawanprash, Dabur Lal Tail, Dabur Honitus, Dabur Honey, and Dabur PudinHara in the Healthcare space. Dabur Amla, Dabur Red Paste and Vatika in the Personal Care category. And, Real juices in the Food and Beverages category.
