A strategic internal restructuring exercise has been executed in one of India’s oldest spice makers, Badshah Masala, people with knowledge of the matter told Moneycontrol.
Jhaveri family members Hemant and his cousin Kailash, key promoters of the Mumbai-based company, have parted ways, they said. Badshah Masala was established in 1958.
“As part of the deal, Hemant has acquired the 24% stake from Kailash for Rs 130 crore ($17.6 million) at a valuation of around Rs 540 crore ($73.3 million). An agreement to this effect has been signed by both parties,” said one of the persons cited above.
Hemant now holds 79% stake in Badshah Masala. Hemant and Kailash previously held 55% and 45%, respectively.
“The remaining 21% stake held by Kailash will be sold to Hemant in a staggered manner – 7% annually over a period of three years,” added a second person. A third person confirmed the same.
In December it was reported that private equity firm General Atlantic, through its investee company Capital Foods Pvt. Ltd, is looking to buy a controlling stake in Badshah Masala.
During 2020, the branded spices segment has seen a couple of deals. ITC bought Kolkata-based Sunrise Foods Pvt. Ltd. and Norway’s Orkla acquired a majority stake in Kerala’s largest spice maker Eastern Condimments through its wholly owned subsidiary MTR Foods.