INR 75-100 crore will be for acquisitions in new categories such as ready-to-eat & curry paste.
Cremica Food Industries plans to offload 10% stake to PE funds to raise about INR 100 crore for acquisitions to enter new food categories.
“Since we have a reasonable valuation today of about INR 700 crore, we would be ready to dilute 10% of equity stake in the company to PE investors to raise between INR 75-100 crore. The funds would be used to acquire food processing companies to enter new categories,” said Akshay Bector, Chairman and MD, Cremica Food Industries.
While it continues to supply sauces and condiments to MNCs like McDonald’s and Dominos, Cremica is also building its own brand to build better margins in the food business.
About 30% comes from B2B, we will continue supplying to restaurant chains as we have the right to own the technology and be on the development side of the food business.
The INR 200 crore New Delhi-based company plans to enter new segments such as curry pastes and ready-to-eat products. “We want to become a full-fledged food processing company and funds raised would be used to acquire companies in the Indian food space. Our balance sheet is young and healthy and we would scout for companies with revenues up to INR 200 crore and intend sealing the deal within a year,’’ added Bector.
“About 30% of the business comes from the B2B business and we will continue supplying to restaurant chains as we have the right to own the technology and be on the development side of the food business,’’ said Bector.
Building distribution and expanding manufacturing capacities will also be the priority for the food processing company. A new ketchup manufacturing plant is being planned at Taloja in Maharashtra with an investment of INR 30 crore. Besides, distribution will also get enhanced from 20,000 outlets to reach to 100,000 outlets in the next three years.
