The FMCG major said that it has completed its acquisition of a 51% stake in a majority stake in the country’s top spice brand Badshah Masala. Founded in 1958, Badshah Masala is engaged in the business of manufacturing, marketing and export of ground spices, blended spices and seasonings. It has 52 products available in India and overseas markets. Blended spices form 82% of the revenue. It has 2 manufacturing facilities located in Umargam, Gujarat.
The company announced the acquisition of a 51% stake in Badshah for Rs 587.52 crore, less proportionate debt as of the closing date, with the Badshah enterprise valued at Rs 1,152 crore. This equates to a revenue multiple of approximately 4.5x and an EBIDTA multiple of approximately 19.6x of FY2022-23 estimated financials.
This acquisition supports Dabur’s strategic goal of growing its Foods business to Rs 500 crore in three years and expanding into new adjacent categories. This also marks Dabur’s entry into India’s branded spices and seasoning market, which is worth over Rs 25,000 crore.
This acquisition supports Dabur’s strategic goal of growing its Foods business to Rs 500 crore in three years and expanding into new adjacent categories. This also marks Dabur’s entry into India’s branded spices and seasoning market, which is worth over Rs 25,000 crore. Dabur India stated that it will acquire the remaining 49% of Badshah’s issued and paid-up equity share capital over a five-year period.Badshah Masala Private Limited has become a subsidiary of Dabur India as a result of the above transaction,” the company said in a statement.