Dabur to acquire 51% stake in Badshah Masala for Rs 587.52 crore

27 Oct 2022 , 07:22 AM

FMCG giant Dabur India revealed on Wednesday that it would pay Rs 587.52 crore to acquire a 51% share in Badshah Masala Private Limited. Dabur has forayed into the branded spices and seasonings business in India, which is estimated to be worth over Rs25,000 crore. It will take five years to acquire the remaining 49%.

The company Badshah Masala manufactures, markets, and exports ground spices, spice blends, and seasonings. According to Dabur, the acquisition is consistent with the company’s strategic goal of expanding into new adjacent food categories.

As of the closing date, the Badshah firm was valued at Rs1,152 crore, and Dabur will acquire a majority share in it, less proportionate debt. According to the estimated financials for FY2022-23, this amounts to a Revenue multiple of roughly 4.5x and an EBIDTA multiple of roughly 19.6x, the business said in a statement.

Currently, Dabur’s FMCG portfolio includes the following products: Dabur Amla, Dabur Red Paste, and Vatika in the Personal Care category; Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara, and Dabur Lal Tail in the Food & Beverage category.

In FY22, Dabur reported combined operating revenue of Rs10,889 crore and a combined profit after tax of Rs1,742 crore.

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