Dabur India acquires 51% stake in Badshah Masala for INR 587.5 Cr

Dabur

Dabur India announces that it will acquire a 51% stake in Badshah Masala for INR 587.52 crore. Dabur has thus entered the INR 25,000 crore branded spices and seasoning market in India. After five years, the remaining 49% will be acquired.

Badshah Masala is valued at INR 1,152 crore, less proportionate debt, as of the closing date. This translates to a revenue multiple of around 4.5 times and an EBIDTA multiple of around 19.6 times the estimated financials for FY2022-23, according to the company.

Mohit Barman, Chairman of Dabur India, 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 Chairman Mohit Burman stated.

The gaint said that Badshah Masala is engaged in the business of manufacturing, marketing and export of ground spices, blended spices and seasonings. The acquisition is in line with the company’s strategic intent of venturing into new adjacent categories in the food space.

Hemant Jhaveri, Managing Director at Badshah Masala, said, “Dabur will help drive the future growth potential of Badshah on a stronger trajectory. Our companies are a great fit. This transaction will enable us to accelerate our growth by adding our products to Dabur’s broad portfolio to meet the needs of consumers across geographies.”

Moreover, in FY22, Dabur generated INR 10,889 crore in consolidated revenue from operations and INR 1,742 crore in consolidated profit after tax.

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