Dabur India acquires 51% in Badshah Masala for Rs 587cr

New Delhi: Home-grown FMCG firm Dabur India on Wednesday said it will acquire 51 per cent stake in Badshah Masala in a Rs587.52-crore deal, marking its entry in the fast-growing spices and seasoning category. The company has signed definitive transaction agreements to acquire 51 per cent shareholding of Badshah Masala Pvt Ltd, a firm engaged in manufacturing, marketing and export of ground spices, blended spices and seasonings, said a joint statement.

"The acquisition is in line with the company's strategic intent of entering into new adjacent categories in the food space," Dabur India said in a regulatory filing.

Over the acquisition cost, Dabur India said "51 per cent equity shareholding has been agreed at Rs587.52 crore less proportionate debt as on the closing date," with the Badshah enterprise being valued at Rs1,152 crore. While the balance 49 per cent of the equity share, Dabur said is "to be acquired after a period of 5 years." With this acquisition, Dabur India aspires to "expand its Foods business to Rs500 crore in 3 years and expand into new adjacent categories," said a company statement.

This also marks Dabur's entry into the over Rs25,000-crore branded spices and seasoning market in India. After this, Dabur joins the league of other FMCG makers such as Emami, Tata Consumer Products Ltd and ITC, which are already present in the spices market. The Indian spices market which is traditionally retailed in loose form is gradually witnessing a shift towards the branded players with packaged products as consumers no longer have time to grind spices at home and are looking for convenience and safety issues.