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Marking its entry into the Rs 25,000 crore spices and seasonings market, homegrown FMCG company Dabur India is set to acquire a 51% stake in Badshah Masala for Rs 587.52 crore.

This acquisition is in line with Dabur’s strategic intent to expand its foods business to Rs 500 crore in three years, and expand into new adjacent categories. 

“Dabur India Limited (“Dabur” or “Company”) has entered into a share purchase agreement (“SPA”) and shareholders agreement (“SHA”) with the existing promoters and shareholders of Badshah Masala Private Limited (“Badshah” or “Target Company”) to acquire 51% of the equity share capital of the Target Company and balance 49% after a period of five years,” said Dabur in a filing to the exchanges 

With over 52 variants available both in India and international markets, Badshah Masala reported a revenue of Rs 189 crore in FY22. The acquisition pegs its enterprise value at Rs 1,152 crore. 

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“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. This acquisition will accelerate our growth strategy as we continue to build our foods business. We intend to leverage our international market presence to grow this business globally,” said Mohit Burman, Chairman, Dabur India  

This announcement comes as part of Dabur’s second-quarter earnings. The company’s revenue from operations rose 6% to Rs 2,986.49 crore during the quarter under review against Rs 2,817.58 crore in the corresponding quarter of the previous fiscal. It reported a 2.85% decline in its consolidated net profit to Rs 490.86 crore in Q2 FY23 due to high inflation impacting consumption, according to PTI.