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Soon after Norway's Orkla Foods acquired MTR Foods, here is another international food biggie entering India. US' largest chocolate and confectionery-maker Hershey is acquiring a 51 per cent stake in the food and beverage business of the Godrej group, reports The Economic Times. A 51 per cent equity stake in Godrej Beverages & Food will cost Hershey Rs 238 crore or about $54 million, and this values the former at at Rs 466 crore or $106 million.

The sellers in the company include financial investor IL&FS which holds about 40 per cent stake, Godrej Industries and an individual investor and senior Godrej executive A Mahendran. Post acquisition, Hershey would hold 51 per cent equity while Godrej Industries would hold 43 per cent stake, while the remaining 6 per cent to be held by Mahendran.

Godrej Beverages & Food was formed last year when Godrej Industries transferred its foods division to another group company Godrej Tea. The combined entity was renamed as Godrej Beverages & Food Ltd. The company has sales of around Rs 400 crore, and has presence in categories such as tea, edible oils, health drinks including soymilk, tomato puree, fruit drinks and bakery fats.

Apparently, Hershey's main attraction towards Godrej was its confectionery business as it will become the largest confectionery player in India through this acquisition. Last year, Godrej Beverages & Food had acquired India's largest confectionery maker Nutrine for Rs 250 crore from the South based Reddy family.