ITV

Tag: export

  • Dabur acquires majority stake in Badshah Masala

    Dabur acquires majority stake in Badshah Masala

    Mumbai: Dabur India has announced that it has signed definitive transaction agreements to acquire 51 per cent shareholding of Badshah Masala,which is engaged in the business of manufacturing, marketing and export of ground spices, blended spices and seasonings.

    This acquisition is in line with Dabur’s strategic intent to expand its foods business to Rs 500 crore in three years and expand into new adjacent categories. This also marks Dabur’s entry into the over Rs 25K crore branded spices and seasoning market in India.

    Dabur has acquired 51 per cent stake in Badshah for Rs 587.52 crore, less proportionate debt as on the closing date, with Badshah being valued at Rs 1,152 crore. This translates to a revenue multiple of around 4.5x and EBIDTA multiple of around 19.6x of FY’ 22-23 estimated financials.

    Announcing the acquisition, Dabur India chairman Mohit Burman 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. We intend to leverage our international market presence to grow this business globally.”

    “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 5 years,” Dabur India group director P. D. Narang said.

    Dabur India 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. 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. Badshah portfolio will gain from Dabur’s extensive distribution reach. We look forward to unlocking further synergies and market opportunities to capture the full potential of Badshah Masala.”

    Badshah Masala Private Limited Managing Director Mr. Hemant Jhaveri said, “We are delighted to enter into a strategic partnership with Dabur. Dabur stands for Trust and Heritage and joining hands with Dabur will help drive the future growth potential of Badshah on a stronger trajectory. Our companies are a great fit. 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.”

    Ajay Shah, advisor to Badshah Masala said, “This strategic investment of Dabur brings together two strong Indian brands. This deal is growth oriented, mutually complementary, value accretive and beneficial for both the companies.”

  • HMC Group plans to triple exports, intl revenue to Rs 3000 cr by FY24

    HMC Group plans to triple exports, intl revenue to Rs 3000 cr by FY24

    Mumbai: Riding on strong global demand for bicycles, e-bikes and automotive components, Hero Motors Company (HMC) Group is set to cross Rs 1000 crore in exports and international revenue by FY22, an increase of 92 per cent over FY 21. The company has set a target for further trebling this figure to Rs 3000 crore by FY 24, banking on high growth in the European and American markets.

    The projections come at a time when the integrated bicycle manufacturer HMC Group marks its 65th Founder’s Day.

    “With the first batch of ‘made in India’ HNF e-bikes to the European market and the launch of Hero E-cycle Valley, we are looking forward to robust global expansion and marking a major leap for indigenous manufacturing,” said HMC, chairman and MD, Pankaj M Munjal. “We are confident of crossing Rs 1000 crore of exports and international revenue and meeting another ambitious target of Rs 3000 crore by FY 24.”

    During the pandemic, Hero Cycles has retained its market-leading share of about 43 per cent in the organised industry and led what is termed by CRISIL as the decadal-high growth in demand for cycles. With the plan to expand the business, this year, Hero Motors Company unveiled its new hi-end export-oriented manufacturing plant at the ambitious Hero E Cycle Valley, giving the company an edge in production of premium bicycles and e-cycles.

    Operationalising the first phase of the Hero E Cycle Valley (Hero Industrial Park) will augment HMC’s annual production capacity to 10 million units, with a production of four million premium bicycles and e-cycles, majorly for global consumption. The Park aims to achieve complete localisation of component production by housing a series of international suppliers.

    On the international front, Hero International – the European bike and e-bike arm of HMC established in March– aims to achieve organic revenue of up to €300 million by 2025, while adding €200 million from inorganic growth. Acquisition of UK brands Avocet Sports and Insync, setting up of a Global Design Centre in Manchester and acquisition of German high-end e-cycles manufacturer HNF are some notable initiatives in the direction of gaining a strong global foothold.