Capital Foods Ltd, a leading maker of ready-to-eat foods, is reportedly acquiring all brands of celebrity chef Sanjeev Kapoor, reports Business Standard, quoting an unnamed source. The deal will enable Capital Foods add a new line of products in its ready-to-eat segment, frozen foods, jams, pickles and papads, the report adds.
Capital Foods is a processed foods company which makes food brands like Smith & Jones and Ching’s Secret. It manufactures and exports nutrition fast food and Indian food spices. It is also a leading private label supplier to several big retailers like Target and Tesco.
The deal seems to be an all stock deal with Kapoor getting 10% in Capital Foods post transaction. Capital Foods is backed by Indivison India Partners, the private equity fund formerly affiliated to the Future Group, which picked up 33% stake in the foods company in 2006.
Kapoor, who started Khana Khazana brand of foods named after his successful cookery show on Zee TV, will also join the board of directors of Capital Foods.
Ajaay Gupta, managing director of Capital Foods, has confirmed the development to the paper, and added that all ‘Khana Khazana’ brands by celebrity chef Sanjeev Kapoor would be a part of Capital Foods. “Sanjeev as a valuable expert in the culinary industry will bring in his knowhow,” Gupta has been quoted as saying.
Gupta is aiming Rs 2,000-crore turnover in the next three-four years.
The report also added that Sanjeev Kapoor, in collaboration with Impulse Marketing, plans to launch a culinary cum wellness magazine, called SK, in English by mid-March 2010. Currently, the publication, priced at Rs 100, is launched in English through a direct-to-home subscription.