Dabur India has agreed to purchase a 51% stake in Badshah Masala, an Indian spice company, to foray into the more than INR 25,000 crores branded spices and seasoning market in India.

The acquisition valued at INR 587.52 crores also forms part of Dabur India’s plans to expand into new adjacent segments and increase its foods business to INR 500 crores in three years.

Badshah Masala with a valuation of INR 1,152 crores, manufactures, markets, and exports ground spices, seasonings, and blended spices.

Mohit Burman — Dabur India Chairman said: “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 Foods business.”

Dabur India will acquire the balance 49% stake in Badshah Masala after five years, according to its director P. D. Narang.

Hemant Jhaveri — Badshah Masala Managing Director said: “Dabur stands for Trust and Heritage and joining hands with Dabur will help drive the future growth potential of Badshah on a stronger trajectory.

“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.”

Expected to be close within this fiscal, the deal is said to be cash EPS neutral in the first year and accretive thereafter.

  Badshah Masala, Dabur India, Food acquisition news, Hemant Jhaveri, India, Mohit Burman, P. D. Narang, Spices