MUMBAI: Swiss fragrance major
Firmenich has acquired a majority stake in
VKL Seasoning Pvt. Ltd, from home grown PE fund
True North.
Founded in 1996, VKL Seasoning Pvt. Ltd is India's leading manufacturer of seasonings and flavours.
About six companies, include Swiss fragrance majors Givaudan, Firmenich, German firm Symrise, Ireland-based Kerry Group and Japanese major Takasago, have expressed interest to acquire majority stake in True North PE-owned Vallabhdas Kanji Ltd (VKL) Seasoning, ET reported in February.
VKL Seasoning will retain its brand identity and will operate as a stand-alone business within the company. Financial terms of the deal have not been disclosed.
True North, which invested about $40 million in 2013, was looking at a valuation of $140 million (Rs1000 crore) for VKL Seasoning, ET reported.
VKL manufactures food ingredients and flavouring solutions in India and the Middle East with a strong focus on the quick service restaurants (QSR) and processed food industries.
Top clients of VKL include Americana Group, Amul, Bikanerwala, Britannia, Cafe Coffee Day, Chick King, Chili’s, Dabur, Dominos, Dunkin Donuts, GlaxoSmithkline, Godrej, Gowardhan Dairy, McDonalds, Mrs. Bectors, Nestle, Parle, Pepsico, Pizza Hut and Unibic.
“India is a critical market for Firmenich and we are committed to investing in our business here both for short and long-term growth,” said Patrick Firmenich, Chairman of the Board, Firmenich.
"By combining our strengths, we will be able to serve our customers with renewed focus across the food sector," said Ajay Mariwala, founder of VKL Seasoning Pvt. Ltd.
Established in Alleppey, Kerala, as whole spice dealer and later expanded into private label and food ingredients businesses, VKL had sold its bulk spices and private label assets to Olam International Ltd in 2011.
VKL is the flagship company of Mumbai-based Kanji Moorarji Group that also diversified to other verticals -- Kancor Flavours and Extracts Ltd; Omni Active Neutraceuticals and Autohangar (India) Pvt Ltd, a dealer of Mercedes-Benz vehicles in India.
Around 70% share of the global fragrances and flavours market is held by top 4 players -- Givaudan, Firmenich, IFF and Symrise.
Indian Food Services market in India (organized and unorganized) is estimated at Rs 3.3 lakh crore in 2017 and is projected to grow at a CAGR of 10% over the next 5 years to reach Rs 5.5 lakh crore by 2022, according to a FICCI-Technopak report.