{"id":13103,"date":"2023-01-09T05:27:07","date_gmt":"2023-01-09T05:27:07","guid":{"rendered":"https:\/\/blog.researchandranking.com\/?p=13103"},"modified":"2024-07-15T11:53:53","modified_gmt":"2024-07-15T06:23:53","slug":"dabur-india-national-player-of-spice","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/dabur-india-national-player-of-spice\/","title":{"rendered":"Dabur Acquires Badshah Masala: Understanding the Impact"},"content":{"rendered":"
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Dabur India, a leading consumer packaged goods company in India, plans to become a significant player in the spices business. The company recently acquired Badshah Masala, a well-known spice brand, to increase its presence in the spices market.<\/p>\n\n\n\n

Let’s learn more about the acquisition.<\/p>\n\n\n\n

Dabur India’s Acquisition of Badshah Masala<\/h2>\n\n\n\n

Dabur India plans to acquire a 51% stake in packaged spices company Badshah Masala for \u20b9 587.52 crores to expand its food business. It will acquire the remaining 49% stake in five years. Once the acquisition is complete, Badshah Masala will become a subsidiary of Dabur India. It expects to complete the purchase during the current fiscal year.<\/p>\n\n\n\n

The acquisition will allow Dabur India to enter the \u20b9 25,000 crores branded spices market, including national and regional players. The deal values the Badshah enterprise at \u20b9 1,152 crores. The estimated financials for FY23 resulted in a revenue multiple of approximately 4.5 and an EBITDA multiple of around 19.6.<\/p>\n\n\n\n

Badshah Masala, founded in 1958, has two manufacturing facilities in Gujarat and sells ground spices, blended spices, and seasonings in India and internationally. It is a dominant player in the spices and condiments industry, with a strong presence in Gujarat, Maharashtra, and Telangana.<\/p>\n\n\n\n

Expectations are that the acquisition will increase Dabur India’s growth in the spices business and help the company become a national player in the market. Mohit Burman, Chairman of Dabur India, stated that the acquisition aligns with the company’s long-term growth strategy and will allow Dabur India to offer its customers a broader range of products. He recently told Business line that the company plans to dramatically grow its food business to achieve \u20b9500 crores over the following three years.<\/p>\n\n\n\n

Dabur India’s CEO, Mohit Burman, explained that Dabur aims to take advantage of India’s market trend toward branded goods by forging ahead in new markets where they will be successful and their current margins won’t need a drastic change. The spices market is one such example, with double-digit growth.<\/p>\n\n\n\n

The Indian Spice Market<\/h3>\n\n\n\n

In 2021, the Indian spices market was worth \u20b9 142,569.3 crores. IMARC Group predicts that the market will reach \u20b9 270,928.4 Crores by 2027, with a CAGR<\/a> of 11.15% from 2022 to 2027.<\/p>\n\n\n\n

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Source: ResearchandMarkets<\/figcaption><\/figure>\n\n\n\n

Indian Spice Market – Export<\/strong><\/p>\n\n\n\n

India is the leading exporter of spices, with exports worth $4,102.29 million in 2021-22. In September 2022, spice exports from India increased by 6.62% to $330.46 million. The graph below shows the trend in Indian spice exports.<\/p>\n\n\n\n

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Source: Spices Board of India<\/figcaption><\/figure>\n\n\n\n

During the FY22 fiscal year, India exported 1.53 million tons of spices. From FY18 to FY22, the total quantity of spices exported from India grew at a CAGR of 10.47%. The graph below shows the total volume of top spices exported during FY22.<\/p>\n\n\n\n

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Source: IBEF<\/figcaption><\/figure>\n\n\n\n

In 2020-21, India exported spices and spice products to 180 destinations worldwide. The top destinations were China, the United States, Bangladesh, Thailand, the United Arab Emirates, Sri Lanka, Malaysia, the United Kingdom, Indonesia, and Germany. These nine destinations comprised over 70% of the total export earnings in 2020-21.<\/p>\n\n\n\n

A few of the key players have also looked at the industry’s competitive landscape of the Indian Spice Market are:<\/p>\n\n\n\n