Annapurna Swadisht Ltd (ASL), a packaged food manufacturing company, is set to enter India’s edible oil industry with the acquisition of the “Arati” branded mustard oil from R R Proteins and Agro Limited (RRPAL).
The estimated acquisition cost, covering the manufacturing facility and the brand, is up to Rs. 28 crore, aligned with the net assets gained through this transaction. The funding for this deal will be a combination of internal accruals and debt, pending approval by the Board.
Commenting on the acquisition, Shreeram Bagla, Managing Director, Annapurna Swadisht Ltd, said, “We believe this acquisition presents an opportunity that aligns well with our Company’s overall strategy of strengthening our presence as a formidable player in the packaged food industry in semi-urban and rural markets of India. We aim to leverage our existing distribution network in Tier III, Tier IV, and Tier V towns in eastern and northeastern markets to increase sales of Arati brand mustard oil by offering consumer packs priced at Rs.10 and Rs.20, which have robust and growing demand in these markets. We expect the acquisition to boost our revenues and improve our profitability going forward.”
ASL currently manufactures snacks and beverages, offering around 75 SKUs across 10 broad categories. Its products are available at over 6 lakh retail touch points primarily in Tier III and Tier IV markets of Bihar, Jharkhand, West Bengal, Assam, Odisha, and Uttar Pradesh. Annapurna Swadisht had revenues of Rs.131cr for 6 month period that ended on September 30, 2023.
