BUSINESS

Badshah Masala acquired by THIS big company for Rs 587.52 crore

Dabur India is now preparing to enter the business of spices. The company has bought a 51 percent stake in Badshah Masala.

Maitry Kothari

Updated : Oct 28, 2022, 06:06 PM IST | Edited by : Maitry Kothari

Badshah Masala acquired by THIS big company for Rs 587.52 crore

Dabur India, a company that makes everyday use consumer products (FMCG), is now preparing to sell spices. With the results released for the September quarter, the company has announced to buy a stake in Badshah Masala. Dabur has announced to acquire 51 per cent stake in Badshah Masala for Rs 587.52 crore. Dabur has signed a definitive agreement to acquire 51 per cent stake in Badshah Masala Pvt Ltd, a joint statement said. After this deal, Dabur India will own the Badshah Masala.

According to the joint statement, Badshah Masala manufacturers, sells and exports ground spices, mixed spices and other food products. Dabur India told the stock exchange that this acquisition is in line with the company's strategic intention to enter new categories of the food sector. Dabur India said that a deal has been done for 51 percent equity stake for Rs 587.52 crore. (Also Read: DNA Explainer: What is process of designing Indian currency notes and who does it)

The value of Badshah Masala for this deal was Rs 1,152 crore. The company said that the remaining 49 per cent stake would be acquired after the next five years. The company said that with this acquisition, Dabur India intends to increase its food business to Rs 500 crore in three years.

In the second quarter results released yesterday, the consolidated profit of Dabur India has registered a decline of 2.85 percent on a year-on-year basis. The company's profit in the September quarter has been 490.86 crores. At the same time, in the same quarter last year, the company had made a profit of Rs 505.31 crore. However, the company's revenue has increased by 6 percent from the operation and has gone up to Rs 2,986.49 crore. In the same period last year, this figure was Rs 2,817.58 crore.

Dabur's Foods and Beverages division posted a strong growth of 30 per cent. The Foods business posted a growth of 21 per cent, while the Beverages business closed the September quarter with a growth of over 30 per cent.

The home care sector witnessed a growth of around 21 per cent, while the toothpaste sector registered a growth of over 11 per cent due to the successful performance of Dabur Red Paste. The shampoo and post wash business has registered a growth of 9 per cent during the quarter. Additionally, Dabur's OTC Ayurvedic department has achieved an increase of over 9 per cent.

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Badshah Masala acquired by THIS big company for Rs 587.52 crore

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