Krebs Biochemicals and Industries Limited (KBIL) will exit the snack food industry in order to focus on its core pharmaceuticals business.
The company told just-food that it is engaged in talks with three Indian companies to sell-off its potato chip factory, which produces Mr Krebs branded potato chips.
While media reports said the plant was for sale in order to restructure debt, KBIL company secretary Jawaharlal Jasthi said the company had been unable to grow its food unit.
“The potato chip plant has not been in operation since November 2007, and we are selling it since we cannot focus enough attention on this part of our business,” he told just-food.
KBIL originally invested over US$5m in the fully automated plant. The facility is situated on three acres and the company is willing to either sell the plant in its entirety or just the equipment.
Jasthi said the Indian parties in talks with KBIL are currently involved in the snack food industry but could not disclose their names.
The main business of KBIL is the manufacture and marketing of prescription and OTC pharmaceuticals.