Dabur acquires 51 per cent stake in badshah Masala!!!
Packaged consumer goods company Dabur india Ltd on wednesday bought 51% stake in badshah Masala Pvt. Ltd. has forayed into the branded spices market through its first acquisition in the packaged food space, for Rs.587.52 crore. The company said that with this acquisition, the company will increase its food business to Rs 500 crore in the coming three years. Also aligns with its strategic intent to enter adjacent categories. The company said in the exchange filing that the market value of branded spices and spices in india is more than Rs 25,000 crore.
The transaction, which valued Mumbai-based badshah Masala at Rs 1,152 crore, is expected to be completed in this financial year. "As per our agreement, we would purchase the remaining 49% shares after five years," stated P.D. Narang, director of the Dabur india Group.
Spices will come in the market
Dabur's move has further strengthened the branded spices market, with several acquisitions including ITC Ltd's investment in Kolkata-based spice maker Sunrise Foods. 67.8% of Kochi-based Eastern Condiments, which distributes both mixed and individual spices, was acquired by Norway's Orkla in 2020. According to the 2021 report by investment bank Avendus Capital, India's branded spices market will double to Rs 50,000 crore by 2025. By then, half of the spices sold in the country will be branded spices.
According to Dabur, ground and blended spices are a fantastic addition to its current food lineup. “The indian Spices and Spices category is a huge and lucrative market. One of the key participants in this market is badshah Masala. Dabur india Chairman Mohit Burman said that this acquisition will accelerate our growth strategy as we continue to build our food business.
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