Badshah Masala becomes a subsidiary of Dabur post acquisition of majority stake

FMCG major Dabur on Monday said the transaction with Badshah Masala has been completed and Badshah Masala has become a subsidiary of Dabur India Limited with effect from January 2, 2023. 

In October 2022, Dabur India announced that it has signed definitive transaction agreements to acquire 51 per cent shareholding of Badshah Masala in a deal worth Rs 587.52 crore. Badshah Masala is a manufacturing, marketing and export firm of ground spices, blended spices and seasonings. This acquisition is in line with the company's strategic intent to expand its foods business to Rs 500 crore in three 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 Chairman Mohit Burman had then said: "The Indian spices and seasoning category is a large and attractive market. Badshah Masala is one of the key players in this space. Our investment in Badshah Masala will help expand this business and continue to provide unmatched quality products." He said that this acquisition would accelerate the company's growth strategy.

Dabur acquired 51 per cent stake in Badshah for Rs 587.52 crore with the Badshah enterprise being valued at Rs 1,152 crore. This translates to a revenue multiple of around 4.5x and Ebidta multiple of around 19.6x of 2022-23 Estimated financials. "The transaction is expected to be Cash EPS (earning per share) neutral in the first year and accretive thereafter. The acquisition is expected to be completed within this fiscal. As per our agreement, we will acquire the balance 49 per cent shareholding after five years," Dabur India Group Director PD Narang said in October 2022.