Consumer products king Hindustan Unilever is apparently in early talks to buy a majority stake in India’s 2nd largest spice company, MDH — valuing the business at about ₹10 to ₹15K crores.
MDH needs no introduction — started by the late Dharampal Gulati with just a tiny shop in Delhi’s Karol Bagh, the company’s packaged spice products are now sold through a network of 400K+ retailers and 1,000 wholesalers nationwide, netting ₹1,200 crores in annual revenues.
The news is still half baked, but plugging MDH’s 60+ products directly into HUL’s unrivaled nationwide distribution could accelerate growth and allow the business to capture a whole lot more share in its segment rapidly.
Worth calling out — the market for branded spices in India is set to double to over ₹50K crores by 2025. Millennials and GenZ shopping for everything at supermarkets is helping steal share from the unorganized sector.