Dabur, an FMCG giant, plans to spice up the market by acquiring major stakes in Badshah Masala for Rs. 588 Crore2 min read
Indian FMCG company Dabur announced on Wednesday that it will acquire 51% shareholding of Badshah Masala Pvt Ltd, in a Rs 587.52-crore deal, marking its entry into the fast-growing spices and seasoning category, which is in the business of manufacturing, marketing, and export of ground and blended spices and seasonings.
“This acquisition is in line with the Dabur’s strategic intention to enter an adjacent new category in the food sector to Rs. 500 Core in three years, ” Dabur India said in a regulatory filing. It also marks his entry into the over 25,000 crore ground and blended spices and seasonings market in India.
The acquisition had announced by the Chairman of Dabur India Ltd, Mohit Burman: “Our investment in Badshah Masala will help us to grow in this business and continue to deliver unmatched quality products. This acquisition will gear up the growth strategy as we continue to grow in our food business sector, Our intention is to leverage our international business in the food sector and market presence to expand business across the globe.
According to a report by Avendus Capital, The blended spices and seasonings market in India is valued at Rs 70,000 crore, in which 35 percent share is for branded spices market and it’s set to double the size by 2025 to Rs. 50,000 crores. Avendus Capital, estimated that in FY30, 15 spices companies are estimated to exceed the revenue by Rs. 1,000 crores, and four will achieve an annual turnover of Rs. 5,000 crores.
According to Trendlyne statistics, In May 2001, Dabur declared 47 dividends. It declared a total dividend of 520.00%, or Rs 5.2 per share, in the most recent fiscal year. This results in a dividend yield of 0.98% at the current share price of Rs 532.15. Looking to buy the majority of stakes in Badshah Masala. It intends to acquire 51% of Badshah Masala’s equity share capital right away and the remaining 49% after five years. According to the company’s filing with the exchanges, the purchase is subject to the fulfillment of a number of terms and conditions outlined in the SPA and the SHA.
Currently, Dabur’s includes the following products in his FMCG portfolio: Dabur Amla, Vatika, and Dabur Red Paste also in the Personal Care category; Dabur Honitus, Dabur Honey, Dabur PudinHara, Dabur Chyawanprash, and in the Food & Beverage category products are Dabur Lal Tail.
In FY22, Dabur reported combined operating revenue of Rs 10,889 crore and a combined profit after tax of Rs 1,742 crore.
“Badshah’s potential for future growth will be put on a greater trajectory thanks to Dabur. Our businesses are a perfect fit. The addition of our products to Dabur’s extensive product line would allow us to accelerate our expansion and better serve consumers worldwide “Hemant Jhaveri, managing director of Badshah Masala Private Limited, stated.
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