Dabur Wants To Conquer Rs 25,000 Crore Branded Spices Market; Acquires Badshah Masala For Rs 587 Crore

Dabur is set to acquire 51 percent stake in Badshah Masala for a cash consideration of Rs 587.5 crore.

Dabur Wants To Conquer Rs 25,000 Crore Branded Spices Market; Acquires Badshah Masala For Rs 587 Crore

It is expected to be completed before March 31, 2023.

The deal will be subject to the fulfillment of terms and conditions as per the share purchase agreement and shareholders agreement.


Dabur details financials

Dabur said, “Dabur India Limited has entered into a share purchase agreement and shareholders agreement with the existing promoters and shareholders of Badshah Masala Private Limited to acquire 51 percent of the equity share capital of the target company and balance 49 percent after a period of five years.

Cost of acquisition of 51 percent equity shareholding has been agreed at Rs 587.52 crore less proportionate debt as on the closing date (100 percent enterprise valuation being Rs 1,152 crore which translates to revenue multiple of around 4.5x and EBIDTA multiple of around 19.6x of FY2022-23 estimated financials).”

Expansion plan

It said the acquisition aligned with its strategic plan to expand its food business to Rs 500 crore in three years and expand into new adjacent categories.

This also marks Dabur’s entry into the over Rs 25,000 crore branded spices and seasoning market in India.

Chairman Mohit Burman said: “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.”

Will acquire 49% after 5 years

Group Director PD Narang said, “The transaction is expected to be Cash EPS neutral in the first year and accretive thereafter. 

The acquisition is expected to be completed within this fiscal. 

As per our agreement, we will acquire the balance 49% shareholding after five years,” 

CEO Mohit Malhotra said: “Branded Spices market in India is growing at healthy double digits, led by increasing consumption, upgradation from unbranded to branded and growing preference for regional flavours across states. 

What it means to each party

The market is dominated by regional players and holds significant potential for growth in the future. 

Dabur has an existing foods portfolio and views ground and blended spices as a good addition to this portfolio….”

Meanwhile, Badshah Masala Managing Director Hemant Jhaveri said: “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.”

Spices market in India

The spices market in India is valued at Rs 70,000 crore, in which branded spices command only a 35 percent share.

It was estimated that the branded spices market is set to double in size by 2025 to Rs 50,000 crore and that by FY30, 15 spice companies are estimated to exceed Rs 1,000 crore in revenue.

Of this, four will achieve Rs 5,000 crore in annual turnover.


FMCG companies have so far mostly stayed away from the segment due to its commoditized nature.

However, earlier this year reports surfaced that Hindustan Unilever had made a move to acquire Mahashian Di Hatti Pvt Ltd or MDH which is one of the oldest players in the spices segment.

Both parties denied the move.

Biggest players

Tata Consumer Products and ITC are also present in the segment via Tata Sampann and Aashirvaad, respectively.

Market estimates show that Everest, MDH, Sakthi Masala, Aachi and Eastern Condiments are the top players in the packaged spices market.

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