McCain Foods has reached an agreement to purchase the frozen potato-processing operations owned by India-based Falcon Agrifriz Foods.
The companies have not revealed the financial value of the deal.
In a statement issued today (12 October), the Canadian frozen-food producer described the acquisition as an “important next step” in its long-term expansion strategy for India.
At the centre of the transaction is Falcon Agrifriz’s automated manufacturing facility in Gujarat. The site makes a variety of frozen potato products for domestic and international retail and foodservice customers.
McCain, which is headquartered in Toronto, currently sells fries, aloo tikki and vegetable fingers in India, as well as cheese bites and mini cheese samosas.
Falcon Agrifriz vice chairman Parthajeet Patnaik said the company built and brought the facility into operation in less than two years.
According to McCain, the Gujarat operation will “complement” its existing Mehsana facility by “creating greater flexibility across its manufacturing network and strengthening its ability to serve customers”.
Falcon Agrifriz has more than 450 employees and collaborates with a contract-farming network comprising over 1,000 growers throughout Gujarat.
India “continues to be a priority growth market for McCain Foods”, said Pierre Danet, the company’s regional president for Asia Pacific and South Africa.
“By strengthening our manufacturing network, we will be better positioned to grow alongside our customers, growers and communities for the long term,” Danet said.
Manish Tibrewal, director and CEO of Falcon Agrifriz, said McCain is the “right company to build on the strong foundation we have established at Falcon Agrifriz and take the business forward”.
McCain began operating in India in 1998. Its Indian business now directly employs more than 940 people and works with a nationwide network of over 2,500 growers.
The purchase comes after McCain invested C$135m ($94.6m) in expanding its Mehsana operations. The project created 110 permanent positions and 150 contract roles.
Worldwide, the privately owned food manufacturer runs 49 production facilities and employs approximately 22,000 people. It generates annual revenue of more than C$16bn.
Just over two weeks ago, the French fries producer scrapped plans for its first German manufacturing plant. McCain attributed the decision to inflationary pressures, excess processing capacity in Europe and weaker demand.
The company is also set to close its Hastings production facility in New Zealand early next year.
In late 2025, McCain divested its vegetable manufacturing operations in South Africa after acquiring US potato processor Penobscot McCrum.