Dabur buys 51% stake in Badshah Masala for Rs 588cr

NEW DELHI: Dabur India announced on Wednesday that it has signed a definitive transaction agreement to acquire 51% shareholding of Badshah Masala, which is in the business of manufacturing, marketing and export of ground and blended spices and seasonings.

A company statement said the acquisition is in line with Dabur’s strategic intent to expand its food business to Rs 500 crore in three years and expand into new categories. This also marks Dabur’s entry into the over Rs 25,000 crore branded spices and seasoning market in India.

Dabur is acquiring the stake in Badshah for nearly Rs 588 crore, less proportionate debt as on the closing date, with the Badshah enterprise being valued at Rs 1,152 crore.

“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 in-tend to leverage our international market presence to grow this business globally,” the statement quoted Dabur India chairman Mohit Burman as saying.

The acquisition is expected to be completed within this fiscal year and according to the agreement, Dabur will acquire the balance 49% shareholding after five years.

Badshah Masala has 52 products available in India and overseas markets. Blended spices form 82% of the revenue and the company has two manufacturing facilities located in Umargam, Gujarat, according to the statement.