Residency Foods & Beverages Ltd (RFBL) has picked up controlling stake in Innovative Foods Ltd (IFL) from the Rs 250 crore sea food exporter Amalgam Group.
Processed food business identified as a key segment
MUMBAI: Residency Foods & Beverages Ltd (RFBL), a subsidiary of country’s largest hospitality chain Indian Hotels Co Ltd (IHCL), has picked up controlling stake in Innovative Foods Ltd (IFL) from the Rs 250 crore sea food exporter Amalgam Group.
The amount being paid for the 70% stake in IFL and its retail RTE/RTC brand ‘Sumeru’ have not been made public. Residency Foods is an unlisted company in which IHCL holds a 25% stake.
As part of the company’s plans to diversify into the various sub segments in the foods business, RFBLhas also entered into an exclusive agreement with Jasper Aqua Exports Pvt Ltd (JAEPL), a Vizag-basedseafood company. This strategic initiative by RFBL offers it an opportunity to extend its seafood products in the value-added category. As per the arrangement, Jasper Aqua will manufacture products exclusively for the RFBL product portfolio. This is significant for the company’s plans for exports to the East Asian markets.
R K Krishnakumar, vice chairman of IHCL, said, “TheIFL acquisition and our agreement with Jasper outlinethe company’s strategic intent for the processed foods business. We strongly believe in leveraging our in-house expertise in the group with FMCG, F&B andretail businesses.”
IHCL’s parent, the Tata Group, has identified the processed foods sector as an emerging business with great potential. With its processing facilities located in Kochi being in close proximity to its raw materials, the T ata Group plans to invest towards upgrading the IFL plant to world-class standards.
“We plan to enhancethe IFL distribution network, logistics, product range and brand building by leveraging the expertise of the new management team,” said Sheila Nair, CEO-IFL. IFL has presence in US, Europe, Middle East, Japan, Australia, Singapore and Sri Lanka.
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