Dabur-Badshah Spices Acquisition Deal: Top Facts For Shareholders In India
January, 4, 2023: New Delhi: To expand its reach in the Indian spices and seasonings market, Dabur India last year announced its decision to acquire a controlling stake in Badshah Masala.
The FMCG company on Monday completed the acquisition of 51 per cent stake in the spice brand.
With the completion of this transaction, Badshah Masala will become a subsidiary of Dabur with effect from January 2, 2023, the company said.
Pursuant to the Share Purchase Agreement and Shareholders Agreement entered into by Dabur India Limited with the existing promoters and shareholders of Badshah, Dabur has acquired 51 per cent equity shareholding of Badshah from its shareholders,” the FMCG major said in an exchange filing.
The FMCG major acquired majority stake in Badshah from its shareholders on fulfillment of terms and conditions as per the share purchase agreement.
After this announcement, Dabur’s share had increased by 1 percent on Tuesday.
Last year on October 26, Dabur had announced to buy 51 percent stake in Badshah Masala for Rs 587 crore. The deal values Badshah Enterprises at Rs. 1,152 crores. The remaining 49 percent will be acquired after five years.
“We have a vision to expand our beverage portfolio into food and beverage portfolio and the acquisition is a step in that direction.
We have 70 per cent market share in our beverage play but now we want to expand it to food as well,” Dabur CEO Mohit Malhotra said on 27 October.
As per Avendus Capital report, Indian spice market is valued at Rs. 70,000 crores, in which the share of branded spices is only 35 percent. Last year, in a paper released by the Investment Bank, it was told that, in the next three years, the branded spice market will reach Rs. 50,000 crore is on its way to double in size.
Meanwhile, Dabur’s FMCG portfolio in the healthcare space includes Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur Pudinhara and Dabur Lal Tail; Dabur Amla, Dabur Red Paste and Vatika in the personal care category and Real in the food and beverages space.
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