Dabur to Expand Globally with Badshah Masala
Major domestic FMCG company Dabur is expanding its spice brand, Badshah, into international markets. According to CEO Mohit Malhotra, the company expects the brand it purchased last year to contribute about 4% of its international sales for this fiscal year. The business is in the process of obtaining regulatory permissions and expanding manufacturing with an eye towards the diaspora markets in the US, UK, and Middle East.
Dabur also intends to grow Badshah Masala into the North, East, and South of the country in addition to the western markets of Maharashtra and Gujarat. "The company (Badshah) is expanding, and it should account for three to four percent of our total foreign business this year. From this point on, we anticipate strong double-digit growth", Malhotra said.
He claims that international markets offer Badshah a "huge business opportunity," particularly in the US and the UK, where there is a sizable Indian diaspora that buys Indian spices. "Badshah seems to have a lot of potential in the US and the UK. We are expanding our manufacturing operations. International shipments have begun in some cases already, according to Malhotra.
Before Dabur's acquisition of Badshah Masala in a Rs 600 crore deal last year, the company sold ground spices, blended spices, and seasonings. It also had modest foothold in a few international markets. Malhotra continued, "But the company has now begun exporting through its distributors." Malhotra discussed the brand, stating that Badshah is "a great growth story and blended spices have a higher margin." Blended spices account for 80% of Badshah's revenue.