Dabur Acquires Badshah, Now Badshah Masala Becomes A Subsidiary Of Dabur With 51% Stake

FMCG company Dabur India Limited on 2 January announced the completion of acquisition of 51% stake in Badshah Masala.
Dabur Acquires Badshah, Now Badshah Masala Becomes A Subsidiary Of Dabur With 51% Stake
Dabur Acquires Badshah, Now Badshah Masala Becomes A Subsidiary Of Dabur With 51% Stake.

FMCG company Dabur India Limited on 2 January announced the completion of acquisition of 51% stake in Badshah Masala. After this transaction, Badshah Masala has now become a subsidiary of Dabur. Dabur gave this information in the exchange filing. Dabur had said on October 26 that it was acquiring 51% stake in Badshah and plans to buy the remaining 49% over a period of five years.

The acquisition is in line with Dabur's plans to grow its food business to Rs 500 crore in three years and expand into new categories. The acquisition will mark Dabur's entry into the over Rs 25,000 crore branded spices market in India. A paper released by the investment bank last year estimated that the market for branded spices would double to Rs 50,000 crore by 2025.

Badshah Masala will operate as a standalone entity and promoter Hemant Jhaveri will continue in the role of managing director. Whereas, Dabur India Ltd. shares closed at ₹562.90 today, which is 0.26% higher than its previous closing price of ₹561.45. Dabur had declared a net profit of Rs 4.9 billion and an interim dividend of Rs 2.5 per share for the quarter ended September.

Dabur's growth strategy will accelerate

When the Badshah acquisition was announced in October, Dabur chairman Mohit Burman had said, "This acquisition will accelerate our growth strategy as we continue to build out our food business." Hemant Jhaveri, managing director of Badshah Masala, said: had said, "We are delighted to enter into a strategic partnership with Dabur. Joining hands with Dabur will help drive Badshah's future growth on a strong trajectory."

Badshah Masala was started in 1958

Badshah Masala dates back to 1958 when Jawaharlal Jamnadas Jhaveri started selling garam masala and chai masala on a bicycle. The spice quickly became popular and Jawaharlal Jamnadas then set up a small unit in Ghatkopar, Mumbai, which did not take long to upgrade to a larger 6,000-square-foot factory in Umbergaon, Gujarat.

Then, the company expanded its offerings to introduce Pav Bhaji Masala, Chaat Masala and Chana Masala. Jawaharlal Jamnadas ran the business successfully till 1996, but after his sudden demise, his son Hemant took over the reins. After Hemant joined the business, one of his most important steps was to expand the reach of the company.

Spices export to more than 20 countries

They expanded their reach and today Badshah Masala is exported to more than 20 countries. Today, a third of the sales are exported and Badshah Masala has carved a niche for itself in the international spice market. The brand occupies a prime shelf position in supermarkets, local kirana stores as well as in international markets with a distributor network of 450.

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