Future Consumer Enterprises Ltd, the food and FMCG arm of Future Group which was earlier called Future Ventures, is exiting its entire stake of 43.7 per cent in Mumbai-based Capital Foods Pvt Ltd, the company informed Bombay Stock Exchange (BSE).
“The company has entered into a definitive arrangement to sell its entire investment in Capital Foods (earlier known as Capital Foods Exportts Pvt Ltd),” Future Group said in a BSE filing.
Future Group did not disclose the name of the buyer but a company spokesperson said that it is a French PE firm which has stake in various food companies in India.
Sources privy to VCCircle said Japanese foods giant Nissin Foods was looking to buy a majority stake in Capital Foods, but the founder of the company Ajay Gupta denied this.
Future Group had invested in Capital Foods in 2006 and was holding 43.7 per cent stake in the company. Nissin also wanted to acquire the promoter’s stake in the company for this deal, besides buying Future Group’s stake, the sources said.
Last month, Future Consumer Enterprises acquired 100 per cent shareholding in Future Agrovet Ltd (FAL) from Future Retail Ltd (FRL) and other shareholders.
Earlier VCCircle also reported that Future Consumer Enterprises is scouting for a strategic partner for another portfolio firm—entertainment and education company (Amar Chitra Katha) ACK Media.
In an earlier interaction with VCCircle, Future Consumer Enterprises executive director and CEO KK Rathi had told VCCircle that the firm is looking at fresh acquisitions to strengthen the top-line of the company. Besides acquisitions in food, Future Consumer Enterprises is actively looking at investing in small food processing companies which would work closely with Future Group.
(Edited by Joby Puthuparampil Johnson)