FMCG major Dabur India announced that it will be acquiring a 51% stake in Badshah Masala Private Limited for Rs 587.52 crore. With this, Dabur has entered into branded spices and seasoning market in India, worth over Rs 25,000 crore. The balance 49% will be acquired after five years.
Badshah Masala is engaged in the business of manufacturing, marketing and export of 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 said.
“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,” Dabur India Chairman Mohit Burman said in a press release.
Dabur will acquiring a controlling stake in Badshah, less proportionate debt as on the closing date, with the Badshah enterprise being valued at Rs 1,152 crore. This translates to a Revenue multiple of around 4.5x and EBIDTA multiple of around 19.6x of FY2022-23 Estimated financials,” the company said in a statement.
Currently, Dabur’s FMCG portfolio includes 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 & beverages space.
Dabur recorded consolidated revenue from operations of Rs 10,889 crore and consolidated profit after tax of Rs 1,742 crore in FY22.
“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,” Badshah Masala Private Limited Managing Director Hemant Jhaveri said.
