ADF to buy foods companies in UK, US, Australia

ADF Foods Ltd, the Indian ethnic foods company, is looking for acquisitions in the foods space, managing director, Bimal Thakkar told DNA.

The 78-year-old, Mumbai-based company is looking at more than one buyout overseas in the UK, US and Australia markets, within Rs100 crore.

“I would be very disappointed if we did not close anything within this financial year. We are aggressively looking at opportunities and are open to more than one acquisition,” Thakkar said. The company will not look at India for acquisitions citing unrealistic valuations.

“Our aim is to grow our revenues from Rs105 crore now to Rs500 crore in five years and that is not going to happen just by organic growth. We are in a good position to look at acquisitions. We have a good cash reserve and have no debt on our books. We can easily do up to Rs100 crore worth of acquisitions without diluting any shares,” Thakkar said.

Through the acquisitions, ADF is looking to expand its portfolio from Indian ethnic products to Thai, Chinese, Mexican varieties. It currently sells brands like Soul, Khanasaama, Camel, Aeroplane and Ashoka in India and overseas.

ADF is also looking at selling more in India and raise the country’s contribution to its revenues.

Currently India contributes around 5% to revenues, mainly from sales to Armed Forces canteen stores. “Five years down the line, India will account for 40% of our revenues. We have recently started selling in India,” Thakkar said.

The company is increasing distribution via the modern trade and traditional retail channel.

It is currently selling in Mumbai and Pune and aims to have a pan-India presence by the end of this financial year.
ADF has a plant each in Nadiad (Gujarat) and Nashik (Maharashtra) that manufacture ready-to-eat curries, pickles, frozen snacks, pastes, chutneys, and instant
mixes.

It is also increasing capacity at Nadiad by building a 1000 tonne cold storage and adding additional lines for frozen foods.
The company will look to set up another factory in the country after a year, Thakkar said.