India's Cremica set for private-equity investment
India's Cremica nears private-equity investment
Cremica, the Indian food group, is set to see private-equity investment after one of the children of the company's founder decided to sell shares.
just-food understands India-focused private-equity firm CX Partners is set to buy 26% of Cremica owned by Ajay Bector, one of the three siblings that has shares in the business.
Cremica, founded by Rajni Bector as a backyard enterprise back in 1978, is controlled by three of her children - Ajay, Akshay and Anoop - who have equal stakes of 26%.
Reports in India suggest CX Partners could also buy a 22% stake owned by Motilal Oswal Private Equity Advisors. A source familiar with the situation could neither confirm nor deny whether CX Partners could acquire the Motilal shares.
Should CX Partners buy both shareholdings, it will hold a 48% stake in Cremica. Anoop and Akshay Bector will retain their 26% stakes.
The company has plans to build a more nationwide business in the next two to three years. At present, its products are sold primarily in northern India and Mumbai.
Cremica, which generated turnover of over US$100m during the 2014-15 financial year, also plans to add products including jams, ready-to-eat food and snacks to its portfolio. It has 12 lines of products including breads, biscuits, sauces, gravies, ice creams and condiments.
The company sells sauces, ketchup and mustard under its namesake brand. It is a manufacturer for Hindustan Unilever, while supplying private-label products to retailers like Big Bazaar and Spencer's and foodservice chains like McDonald's and Pizza Hut.
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