Badshah Masala has 80,000 distributors and Dabur plans to leverage its larger distribution network (Representative image)
FMCG major Dabur India has announced the completion of its acquisition of a 51 percent stake in spice brand Badshah Masala.
"Pursuant to share purchase agreement and shareholders agreement executed by Dabur India Limited with the existing promoters and Shareholders of Badshah, Dabur has acquired 51 percent equity shareholding of Badshah from its shareholders," it informed the stock exchanges.
"The said transaction has been completed on January 2, 2023", the company further noted.
Consequent to the above transaction, Badshah Masala has become a subsidiary of Dabur "with effect from today", the regulatory filing added.
Dabur had, on October 26, announced that it would acquire a 51 percent stake in Badshah Masala for a cash consideration of Rs 587.52 crore. The deal valued the Badshah enterprise at Rs 1,152 crore.
Dabur Group Director P D Narang had, in a release, also stated that the remaining 49 percent stake in Badshah Masala would be acquired by the company after five years.
“We have the vision to extend our beverage portfolio to food and beverage portfolio and the acquisition is an attempt in that direction. We have a 70 percent market share in our beverage play but now we want to extend this to food too,” Dabur CEO Mohit Malhotra had said on October 27.
Badshah Masala has 80,000 distributors and Dabur India plans to leverage its larger distribution network for expanding the brand.
Malhotra had stated that Badshah Masala would operate as a standalone entity and promoter Hemant Jhaveri would retain the role of managing director.
Dabur's acquisition of Badshah Masala comes at a time when rival FMCG majors such as Tata Consumer Products and ITC are also making a bid for the spices and seasoning segment through their brands Tata Sampann and Aashirvaad, respectively.
The spices market in India is valued at Rs 70,000 crore, in which branded spices command only a 35 percent share, a report by Avendus Capital said.
A paper released by the investment bank last year estimated that the branded spices market is set to double in size by 2025 to Rs 50,000 crore.
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