Dabur India acquires 51% shareholding of Badshah Masala– a spice company involved in the business of manufacturing, marketing and export of ground spices, blended spices and seasonings – for Rs. 587.52 crores. This purchase comes on with Dabur’s calculated commitment to expand its Foods business to Rs. 500 crores in 3 years and expand into new adjacent categories. This also marks Dabur’s entry into the over Rs. 25,000 crores branded spices and seasoning market in India.
Dabur is acquiring 51% stake in Badshah for Rs. 587.52 crores, less proportionate debt as on the closing date, with the Badshah enterprise being valued at Rs. 1,152 crores. This translates to a Revenue multiple of around 4.5x and EBIDTA multiple of around 19.6x of FY2022-23 Estimated financials.
Dabur India, chairman Mohit Burman said that the Indian spices and seasoning category is a large and attractive market. Badshah Masala is one of the key players in this space and their investment in Badshah Masala will help expand this business and continue to provide unmatched quality products.
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.
This strategic investment of Dabur brings together two strong Indian brands. This deal is growth oriented, mutually complementary, value accretive and beneficial for both the companies.