Modern has been private-equity-owned since 2015

Modern has been private-equity-owned since 2015

Mexico-based bakery major Grupo Bimbo is reported to be in early discussions over acquiring a majority stake in Indian business Everfoods.

Citing unnamed sources, The Economic Times has reported Bimbo is in preliminary talks with Everfoods' owner, the private-equity firm Everstone Capital.

just-food has approached Bimbo and Everstone for comment. Neither had responded at the time of writing.

Everfoods is centred on Modern Foods, the Indian bakery business Everstone acquired from Hindustan Unilever, the global FMCG giant's arm in the country, in 2015. Modern Foods markets a range of baked goods, ranging from bread to cakes and muffins.

Last year, Modern Foods, which has more than 40 factories in India, snapped up a majority stake in local peer Supreme Baker India.

Bimbo, which says it is the world's largest bakery business, entered in India through the acquisition of a majority stake in local packaged bread group Ready Roti India, with brands including Harvest Gold.

The company's only move to expand inorganically so far in 2020 was announced in February through the formation of a joint venture in Kazakhstan.

India's bread and rolls category - market data

Source: GlobalData

From the archive, June 2017: India bread industry believes Bimbo's entry could spark more deals