Cremica secures first investment from India Agri Business Fund II

Cremica secures first investment from India Agri Business Fund II

India's Cremica Food Industries has raised the equivalent of US$15m from a new private equity fund to boost its presence in retail outlets across southern and western India.

The investment from the India Agri Business Fund II, which took a minority stake in Cremica, was organised by fund managers Rabo Equity Advisors. Rabo said it was the first investment from the US$200m fund, which is targeted at the expansion and growth of food and agribusiness companies in India.

Cremica said last year it planned to build a more nationwide business over the next few years, expanding on its existing primary sales market of northern India and Mumbai.

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 such as McDonald's and Pizza Hut.

Cremica generated turnover of more than US$100m during the 2014-15 financial year and said it planned to add products including jams, ready-to-eat food and snacks to its portfolio.