New Delhi: The country’s leading spice maker MDH is planning to sell its stake. Hindustan Unilever, the country’s largest FMCG company, is in talks with the company to buy a major stake in MDH. The value of MDH can be up to Rs 15,000 crore.
Negotiations with other companies
Livemint has given this news by quoting knowledgeable sources of this conversation. According to sources, MDH has been in discussions with companies for stake sale since the death of the company’s founder Dharampal Gulati. However, the deal has not been finalized with anyone yet. According to an estimate, by 2025, India’s branded spice market is likely to reach 50 thousand crore rupees.
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HUL is not in spice business
If HUL (Hindustan Unilever) enters this segment, then this market can grow further. As of now, HUL does not have a spice segment in its portfolio. After the acquisition of MDH, Hindustan Unilever may also use its distribution network to expand the spice business.
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MDH has more than 60 products
MDH has over 60 products in its portfolio. It has a distribution network of over 1,000 wholesalers and lakhs of retailers spanning small towns and villages. Hindustan Unilever can also benefit from this. The company is capable of producing 30 tonnes of spices daily. According to a Mint report, HUL and MDH did not respond when asked about this conversation. In the financial year 2020-21, MDH’s net sales stood at Rs 1,191 crore, on which it made a profit of Rs 507 crore.
Tags: Dharmpal Gulati Family, Hindustan Unilever, HUL, Indian FMCG industry, MDH, SPICES
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