Marks entry into Rs 25,000 Cr+ spices & seasoning category
Dabur India has signed definitive transaction agreements to acquire 51% shareholding of Badshah Masala, which is engaged in the business of manufacturing, marketing and export of ground spices, blended spices and seasonings. This acquisition is in line with Dabur’s strategic intent to expand its goods business to Rs 500 crore in 3 years and expand into new adjacent categories. This also marks Dabur’s entry into the over Rs 25,000 crore branded spices and seasoning market in India.
Dabur is acquiring 51% 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 translates to a revenue multiple of around 4.5x and EBIDTA multiple of around 19.6x of FY2022-23 Estimated financials.
Announcing the acquisition, Dabur India Chairman Mohit Burman 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 Chief Executive Officer Mohit Malhotra said, “Branded spices market in India is growing at healthy double digits, led by increasing consumption, upgradation from unbranded to branded and growing preference for regional flavours across states. The market is dominated by regional players and holds significant potential for growth in the future. Dabur has an existing foods portfolio and views ground and blended spices as a good addition to this portfolio. Badshah portfolio will gain from Dabur’s extensive distribution reach.”