Shares of India-based consumer goods company Dabur India price rises by 3% to Rs 548.41 on Thursday’s intraday trade, after the company, announced the acquisition of a 51% stake in Badshah Masala Private Limited and also announced an acquisition to expand its food business.
Dabur India told that “The company is signing a definitive transaction agreement to acquire 51% shareholding of Badshah Masala Private Limited (Badshah), which is engaged in the business of manufacturing, marketing, and export of ground spices, blended spices, and seasonings”.
This investment is in line with Dabur’s strategic intent to expand in Food business to Rs 500 crore in 3 years and into new adjacent categories. Moreover, it also marks Dabur’s entry into over Rs 25,000 crore branded spices and seasoning market in India.
Dabur focuses on constructing a shared deal and is plowing higher investments in capital expenditure, digitalization, and sustainability. Dabur has made rapid strides on the ESG front and has set ambitious targets, moving forward
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Dabur’s Foods & Beverages business registered a strong 30% growth. Besides, the Beverages business finished the quarter with a jump of over 30% while the Foods business reported a 21% growth, Dabur India Chairman added.
Badshah Masala’s Statement
Badshah Masala’s turnover in FY 2021-22 was at Rs 189 crore. The Jhaveri family-managed company gets the majority of its revenue from blended spices and has 2 manufacturing units located in Umargam, Gujarat.
Badshah Masala Managing Director Hemant Jhaveri said, ”Joining hands with Dabur will help drive the forthcoming growth potential of Badshah on a stronger trajectory. Furthermore, our companies fit significantly. This transaction will enable us to accelerate our growth by adding our products to Dabber’s broad portfolio to meet the needs of consumers across geographies.”
The Board of Directors of Dabur India Ltd declared an Interim Dividend of 250% for 2022-23. “Continuing with our payout policy, the Board has proclaimed an Interim Dividend of ₹2.50 per share, aggregating to a total payout of ₹442.94 Crore,” Dabur India Ltd Chairman Mr. Mohit Burman said.
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