New Delhi: Germany’s diversified business group Dr Oetker Thursday announced the completion of takeover of Fun Foods, the Indian manufacturer of packaged food such as mayonnaise and sandwich spreads. Brand Fun Foods, acquired in 2008, has been re-launched with a new logo and revamped packaging.
After the Fun Food takeover, Dr Oetkar has expanded its food range and introduced barbecue sauces, Mexican, Chinese and Indian sauces, eggless cake mixes and other similar products.
Explaining the entry in the Indian packaged food market, Volkmar Preuss, board member and executive vice president sales at Dr. Oetker Global Food Division, said, “For a global food company, it is important to be in India. We chose to enter India through the acquisition route.”
The brand will target the lower to upper middle class consumers through modern retail as well as traditional stores.
Oliver Mirza, Managing Director Dr Oetker India & Fun Foods said, “Dr. Oetker is entering India as this is an emerging economy growing at a double digit rate. There is a growing demand for continental cuisine, with food sector and food retailing both growing significantly.”
In order to compete locally, the product line will remain focused on the Indian palette but an international line of products can be expected in the next six months, he added. Internationally, the company sells a range of region specific foods such as frozen pizzas, ready desserts, dessert mixes, and sweet dishes, which may be launched here depending on the demand.
The company has plans for further investment and expansion and it has already acquired land in Rajasthan to expand its manufacturing capacity.
Fun Foods India, has also been a bulk supplier to well known food service industry players like, Yum Restaurants (Pizza Hut and KFC), Subway ™, Barista, Dominos Pizza, Pizza Corner, Java Green, Costa Coffee and PVR Cinemas in India. It was acquired by The Oetker group for 110 crores in 2008.
The Euro 8 billion Oetkar group is one of Germany’s prominent family-owned conglomerates with interests in shipping, food, banking, beer and non-alcoholic beverages.