Dabur to invest Rs 588 crore for acquiring a 51% share in Badshah Masala

• ByStartupStory     |    October 27, 2022

On October 26, Dabur announced the acquisition of a 51 percent share in Badshah Masala for Rs 587.5 crore in cash. According to the company’s news statement, the transaction is planned to be completed by March 31, 2023.

The acquisition is conditional on the fulfillment of the terms and circumstances outlined in the share purchase agreement and shareholders agreement.

Dabur will acquire a controlling stake in Badshah, less proportionate debt as of the closing date, 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 FY2022-23 Estimated financials,” the company said in a statement.

“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 Food business. We intend to leverage our international market presence to grow this business globally,” Dabur India Chairman Mohit Burman said in a press release.

Dabur’s FMCG portfolio currently includes Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara, and Dabur Lal Tail in the healthcare area; Dabur Amla, Dabur Red Paste, and Vatika in the Personal Care category; and Real in the Food & Beverage market.

In FY22, Dabur reported total revenue from operations of Rs 10,889 crore and consolidated profit after tax of Rs 1,742 crore.

“Dabur will help drive the future growth potential of Badshah on a stronger trajectory. Our companies are a great fit. This transaction will enable us to accelerate our growth by adding our products to Dabur’s broad portfolio to meet the needs of consumers across geographies,” Badshah Masala Private Limited Managing Director Hemant Jhaveri said.

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