FMCG major Dabur India has bought a majority stake in local spices and seasonings firm Badshah Masala, it has announced.

The deal, for INR5.88bn (US$71.1m), marks Dabur India’s entry into the country’s branded spices and seasonings market. It has taken a 51% stake in Badshah Masala with an agreement to acquire the remaining 49% after five years.

Dabur, which has a food business manufacturing products including pickles and sauces, said the acquisition is in line with its plans to grow its presence in the sector by moving into new categories.

Badshah Masala was founded in 1958. It has 52 products, which it sells in India and internationally, and two manufacturing facilities in Gujarat. Blended spices form 82% of its revenue.

Speaking about the deal, Dabur CEO Mohit Malhotra said: “The 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’s 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.”

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Badshah Masala managing director Hemant Jhaveri 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. 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.”