Dabur India has completed the purchase of a 51 per cent stake in Badshah Masala, paving the way for the FMCG giant to enter the branded spices and seasoning market.
Badshah Masala produces, markets, and exports ground spices, blended spices, and seasonings. Dabur previously stated that the acquisition is in line with the company’s strategic intent of entering new adjacent food categories.
According to Dabur, Badshah Masala Private Limited has become a subsidiary of Dabur India Limited as of 2 January, 2023.
Dabur has thus entered India’s branded spices and seasoning market, which is worth over Rs 25,000 crore. After five years, the remaining 49 per cent will be acquired.
“This transaction will allow us to accelerate our growth by adding our products to Dabur’s broad portfolio to meet the needs of consumers across geographies,” said Hemant Jhaveri, Managing Director of Badshah Masala Private Limited.
Dabur announced last October that it would acquire a 51 per cent stake in Badshah Masala for Rs 587 crore.
According to Avendus Capital, the Indian spice market is worth Rs 70,000 crore, with branded spices accounting for only 35 per cent of the market. According to a paper released last year by the investment bank, the branded spices market will double in size to Rs 50,000 crore in the next three years.
Meanwhile, Dabur’s FMCG portfolio includes the healthcare brands Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara, and Dabur Lal Tail; Dabur Amla, Dabur Red Paste, and Vatika; and Real in the Food & Beverage category.
