US-based foods company General Mills has acquired Pune’s ready-to-cook spice and sauce mixes manufacturer Parampara Foods’ brands and marketing rights. According to sources with direct knowledge of the deal, the company’s promoters Chillal family had received Rs 65 crore (approx. $12.18 million) as consideration for the brands.
Brands like Parampara, StarterZ and Curry Tree will be now marketed to all the countries where General Mills has a presence, the company has said in a Press release. Parampara’s products are primarily sold in Pune region and also exported to countries like the US, Canada and Japan.
“The production will, however, remain with the current management of the company,” co-owner Amit Chillal told VCCircle in a telephone interview. Although he refused to divulge the financial details of the transaction, our sources pegged at Rs 65 crore.
Deloitte Touche Tohmatsu India was the financial advisor to the deal.
“The acquisition of Parampara’s strong portfolio of brands strengthens our ability to help bring home-cooked meals to the family table and positions General Mills India for continued growth,” said Vijay Sood, vice-president and executive director of General Mills India. “Parampara’s ready-to-cook spice and sauce mixes bring simple, great-tasting meal solutions and traditional Indian flavours to cooking around the world.”
With a global annual turnover of $14.9 billion, General Mills is listed on the New York Stock Exchange. Headquartered in Minneapolis, the group generates almost 70 per cent of its annual sales from US retail products. The company has a growing international business, which contributes $2.9 billion in sales.
General Mills sells products like Pillsbury Fresh & Multi Grain Atta and dessert mixes, Betty Crocker dessert mixes, Green Giant vegetables, Nature Valley granola bars and Häagen-Dazs super-premium ice cream, and has a presence in more than 100 countries. Headquartered in Mumbai, General Mills India also has a vibrant export and bakeries & foodservice operation.
This is the third such transaction in this sector. Last year, McCormick & Co., which sells spices, herbs, seasoning blends and sauces to grocers, warehouse clubs and discount & drug stores, invested $115 million for 85 per cent stake in Kohinoor Speciality Foods India Pvt Ltd. In 2007, MTR Foods was sold to Norwegian food giant Orkla for about $100 million.