INSUBCONTINENT EXCLUSIVE:
Fast-moving consumer goods major Dabur India is set to enter the branded spices and seasoning category
It has signed an agreement to acquire 51 per cent in Badshah Masala for a cash consideration of Rs 587.52 crore
The acquisition, the company says, is in line with its strategic intent to expand its food biz to Rs 500 crore in three years.
The spice
major is engaged in the business of manufacturing, marketing, and export of ground spices, blended spices, and seasoning.
Dabur expects to
complete the stake buy on or before March 31, 2023
shareholding has been agreed at Rs 587.52 crore less proportionate debt as on closing date (100 per cent enterprise valuation being Rs 1,152
crore, which translates into revenue multiple of about 4.5x and earnings before interest, tax, depreciation, and amortisation multiple of
the first year and accretive thereafter
The acquisition is expected to be completed by this financial year
said in the release.
Mohit Burman, chairman, Dabur India, said the Indian spices and seasoning category is a large andattractive
Our investment in it 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 food business
revenue stood at Rs 2,986 crore, up 6 per cent, compared with last year
In the juices and nectars category, the company reported a 410-basis point market share gain, digestives category improved 270 basis points
spices market in India is Rs 60,000 crore, in which branded spices is Rs 25,000 crore
The branded spices market is growing at the rate of 15-20 per cent.
