Homegrown FMCG giant Dabur is set to introduce its spice brand Badshah to international markets, with CEO Mohit Malhotra projecting that the recently acquired brand will contribute about 4% to the company’s global sales this fiscal year.
The corporation is targeting the diaspora markets in the United States, United Kingdom, and the Middle East. Currently, it is undergoing regulatory approval processes and expanding manufacturing capabilities.
Furthermore, within the domestic market, Dabur intends to extend the presence of Badshah Masala to the Northern, Eastern, and Southern regions. The company also aims to broaden its footprint in the western markets of Maharashtra and Gujarat.
“The business (Badshah) is growing and this year it should contribute around 3-4 per cent of our overall international business. We expect a high double-digit growth from here,” stated Malhotra.
According to him, the global markets offer a significant business opportunity for Badshah, especially in the UK and the US, where a substantial Indian diaspora, known for its consumption of Indian spices, is present.
“We feel Badshah has a lot of scope in the UK and US…We are upscaling our own manufacturing. Some international exports have already started,” said Malhotra.
Prior to Dabur’s INR 600 crore acquisition of Badshah Masala last year, which specializes in ground spices, blended spices, and seasonings, the company had a limited presence in certain foreign markets. However, Malhotra stated that the company has commenced exports through its distributors.
Discussing the brand, Malhotra mentioned that Badshah represents “a compelling growth narrative, with higher margins particularly in blended spices, constituting 80% of Badshah’s business.”
Within the local market, Dabur is extending the reach of Badshah in the robust western region, leveraging its existing strength in that area.
“First we will consolidate in that region. We would use our Dabur distribution to spread out. Then, over a period of 2-3 years, we will expand it in East, South and North,” he said adding “Badshah is a great space, we have a food portfolio, which is very small. I had given a guidance in the market, which was very clear that food would go up to INR 500 crore.”
Through its acquisition of Badshah, Dabur entered the INR 25,000 crore branded spices and seasoning market in India.
“There is a tailwind in the market which is converting from unbranded to branded at a very fast pace. It’s a INR 50,000 crore market, still INR 25,000 crore is unbranded. This unbranded will become branded at a very fast pace. There is a tailwind of growth of 14-15 per cent in the category,” he said.