Mumbai: In an effort to tap into India’s booming food market, Chennai-based Cavin Kare, a Rs500-crore, fast moving consumer products company that owns brands such as Nyle (shampoo) and Fairever (fairness cream) is looking to acquire a food company for around Rs200 crore this year.
Confirming this, C.K. Ranganathan, the company’s chairman and managing director, said, “A bigger entity with a range of products would be the ideal choice.”
Although it started off as a consumer-products company, Cavin Kare diversified into food with the 2003 acquisition of the Ruchi brand of pickles and foods from the Chennai-based Shyam Group, which runs a chain of restaurants. The food business currently contributes 10% to its revenue.
Now, it wants more. Its plans include expanding its food business into Northern India, where it has a limited presence, and into overseas markets. Cavin Kare’s products are already available in Nepal, Bangladesh, Malaysia, Sri Lanka, Indonesia, West Asia and the US. The company is also keen to enter the European market.
The Indian food market, especially the ready-to-eat segment, is growing rapidly. Last week, Norwegian firm Orkla acquired Bangalore-based MTR Foods, one of the leaders in the ready-to-eat segment, in a transaction whose value is estimated at $80 million (Rs352 crore).
Ranganathan also said that the company would consider making an initial public offering if it needed to raise additional funds for the acquisition. Cavin Kare expects revenue from the food division to outstrip those from personal care products in three years.
“We are very keen to explore new categories in the food sector and will soon expand our business in the Western and Northern parts of India,” said Ramesh Vishwanathan, vice- president, marketing, CavinKare.