Indian food and edible oils manufacturer Agro Tech Foods is set to acquire its local counterpart, Del Monte Foods Private Limited (DMFPL). This announcement was made in a BSE filing dated November 14.
While the financial terms have not been publicly disclosed, reports from The Economic Times suggest that this deal could be valued at approximately Rs13 billion ($154 million).
In a strategic move following the acquisition, Agro Tech Foods intends to rebrand itself as Sundrop Brands. This change aims to reflect the organization’s renewed commitment to growth under its new ownership.
The transaction involves the purchase of DMFPL from a joint venture between Bharti Group and Del Monte Pacific Limited’s (DMPL) Indian division. The Bharti Group held a 59.29% majority stake in the entity, while DMPL owned the remaining 40.71%.
Post-transaction, both DMPL’s Indian division and Bharti will transition to public shareholders of the newly established Sundrop Brands. At this point, the specific proportions of stakes among the parties involved remain unclear. However, Harjeet Kohli, joint managing director of Bharti Enterprises, emphasized in the stock exchange filing that this acquisition positions Bharti as the second-largest shareholder in the newly combined platform.
He stated, “Leveraging significant synergies on the back of a profitable business model, trusted brands, and a loyal consumer base, this transaction is set to bolster the scale and margin profile of the platform, potentially accelerating shareholder returns and offering a more diverse portfolio of high-quality products to consumers.”
Furthermore, the acquisition of the brand provides Agro Tech an exclusive, perpetual license for the Indian Del Monte brand, facilitating its expansion into key retail and foodservice channels.
DMFPL’s extensive product line includes dried pasta, olive oils, canned fruits, vegetables, and fruit-based drinks. Additionally, Agro Tech will inherit DMFPL’s production and R&D facilities located in Ludhiana, Punjab, and Hosur, Tamil Nadu. This strategic acquisition will bolster Agro Tech’s ability to innovate and develop new product lines catered specifically to Indian consumers.
Nitish Bajaj has been appointed as the group managing director of the newly formed Sundrop Brands. His previously held leadership roles span across prominent companies such as Piramal Pharmaceuticals, Reckitt, and Heinz in India.
Commenting on the acquisition, Asheesh Kumar Sharma, CEO and Executive Director of Agro Tech Foods, remarked, “Working closely with Nitish Bajaj, we intend to deliver maximum value to all stakeholders through our enhanced mission of creating innovative, delicious, and convenient food solutions for the modern consumer.”
A spokesperson for DMPL’s India operations remarked, “India has been an exciting and flourishing market for Del Monte, and we are proud of the brand’s journey and impact on the Indian food industry. With Sundrop Brands’ experience and commitment, we believe the Del Monte brand will reach new heights in India. This transaction supports our strategic focus on core markets and partnerships that drive growth.”
As the food and beverage industry trends evolve, this acquisition signifies a noteworthy development within the food and drink business landscape, aligning with ongoing food and drink consumer trends that favor innovative and quality offerings.
This strategic maneuver enhances Agro Tech’s position within the rapidly growing food sector, ultimately benefiting consumers and stakeholders alike.
