Indian Spice Industry Investment Landscape
Indian Spice industry - Investment landscape
Indian Spice industry - An investment destination
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New York-headquartered private equity firm General Atlantic is cooking a
deal through its investee company Capital Foods, the owner of popular
'Chings Secret' to acquire Mumbai based Badshah Masala. The Jhaveri
family is planning to sell 76% Controlling stake to Capital Foods.
Badshah Masala reported revenues of 380Cr-400Cr for FY 20.
MTR foods & Warburg Pincus in their individual capacity are in talk to
buy a controlling stake in Eastern Condiments. US-headquartered
McCormick & Co owns 26% stake in Eastern Condiments. Eastern is
valued at US$ 240mn-US$ 266m.
Norway based consumer goods company is looking to buy 26%
McCormick's stake in Eastern Condiments.
Completed Deals
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Orkla ASA, the US$ 8.8 bn Norwegian group with a strong presence in
branded foods, has acquired MTR Foods, the Bangalore-based Rs 1.35
bn packaged foods company, for Rs 3.53 bn (US$ 80 mn) in an all cash
deal.
A91 Partners acquired a stake of 25% in spice company Pushp Brand
(India) Pvt Ltd with an INR 1.25bn (USD 16.4m) investment, on 17th June
2020.
ITC bought 100% stake in an Indian spice company Sunrise Foods Pvt
Ltd. Sunrise foods is engaged in the business of spices.
US's McCormick & Co bought Kohinoor Speciality Foods Pvt. Ltd. and
began commercial production of Indian spices and ready to cook mixes.
AL CONSULTING
Completed Deals
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Swiss firm Firmenich, world's largest privately owned
fragrance & flavour company acquired a majority stake in VKL
Seasoning from PE firm True North. VKL Seasoning is a
leader in flavours & Seasonings in India and is valued at US$
115mn.
The largest deal in this segment was General Atlantic's US$
185 mn investment for a 27% stake in Ching's Secret
Indian Spice Industry - Expert Views
India's spices industry has been an investment destination for private
equity funds as well as global strategic players.
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"the spice business has become attractive to investors because of its
potential to expand into other product lines such as premixed blends,
ready-to-eat curries, pickles and jams."- Ashwani Khare, executive vice-
president, corporate finance, ICICI Securities.
"Spice makers with a strong brand presence pan-India, those with regional
leadership, higher proportion of masala and the ones which have high
scale, geographical spread and growth potential are typically interesting to
PE firms," said Haresh Chawla, partner, True North.
"Historically, the spices sector has not seen much deal activity. However,
with increasing shift towards branded spices and blended masalas over
the last few years, this sector is witnessing strong interest," said Anshul
Agarwal, co-head, consumer, financial institutions group and
business services, of investment banking firm Avendus Capital.
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