Dabur India acquires 51% shareholding of Badshah Masala.

Tajagi denewala swad me nirala ! Badshah kamal chay ka masala !! Badshah masala…!!!

Can you recognize the Add song in your mind after reading this..? Our Beloved Badshah masala is part of Dabur India Now.

The FMCG major said that it has completed its acquisition of a 51% stake in a majority stake in the country’s top spice brand Badshah Masala.

📜 About Badshah Masala

Founded in 1958, Badshah Masala is engaged in the business of manufacturing, marketing, and export of ground spices, blended spices, and seasonings. It has 52 products available in India and overseas markets. Blended spices form 82% of the revenue. It has 2 manufacturing facilities located in Umargam, Gujarat.

Dabur India acquires 51% shareholding of Badshah Masala for Rs 587.52 crore, and is going to buy rest of the 49% stakes in coming 5 years.

📜 About Dabur

Dabur Ltd is an Indian multinational consumer goods company, founded by S. K. Burman and headquartered in Ghaziabad. It manufactures Ayurvedic medicine and natural consumer products and is one of the largest fast-moving consumer goods companies in India, and now has entered the vigorously growing spice market in India.

🕵️ About The Deal

On 27 October 2022, Dabur India announced the signing of definitive transaction agreements to acquire 51% shareholding of Badshah Masala. The company had said that it is acquiring a 51% stake in Badshah for Rs 587.52 crore, less proportionate debt as of the closing date, with the Badshah enterprise being valued at Rs 1,152 crore.

This translates to a revenue multiple of around 4.5x and an EBIDTA multiple of around 19.6x of FY2022-23 by estimated financials. With this acquisition in line with Dabur’s strategic intent is to expand its Food business to Rs 500 crore in 3 years and expand into new adjacent categories.

This also marks Dabur’s entry into the over Rs 25,000 crore branded spices and seasoning market in India. Dabur India said it will acquire the balance 49% of the issued and paid-up equity share capital of Badshah after a period of 5 years.

The FMCG giant Dabur India said

Pursuant to the share purchase agreement (SPA) and shareholders agreement (SHA) executed by the company with the existing promoters and shareholders of Badshah, Dabur has acquired 51% equity shareholding of Badshah from its shareholders upon fulfillment of terms and conditions as per SPA and SNA and the said transaction has been completed on 2 January 2023.

Consequent to the above transaction, Badshah Masala Private Limited has become a subsidiary of Dabur India, the company said in a statement. Dabur India is one of India’s leading FMCG companies. It is one of the world’s largest ayurvedic and natural healthcare companies. The FMCG major’s consolidated net profit declined 2.83% to Rs 490.06 crore on a 6% increase in net sales to Rs 2986.49 crore in Q2 September 2022 over Q2 September 2021.

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