Temptation Foods to raise $200 mn by fiscal-end

Temptation Foods to raise $200 mn by fiscal-end
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First Published: Sun, Dec 30 2007. 02 18 PM IST
Updated: Sun, Dec 30 2007. 02 18 PM IST
PTI
Mumbai: Temptation Foods Ltd, a leading frozen food exporting firm, plans to raise $200 million by March 2008 to fund its acquisition spree and expansion.
“We are moving towards our next level of growth. We have not yet decided the route but it could be rupee convertible loan or Global Depository Receipts,” TFL CEO Vinit Kumar told PTI.
Looking at the top slot in the segment, TFL is likely to deploy these funds for acquisitions of brands and on expanding in the domestic market.
The company had in 2007 raised $30 million through a Qualified Institutional Placement (QIP) which has been part utilized for acquiring Everfresh, the food processing unit of Chambal Fertilizers and Chemicals Ltd (CFCL) and recently a marine export business in southern India for an undisclosed sum.
“For the marine business, we have followed an asset light model and have bought only the business with an option to buy its factories within the next three years,” Kumar said.
Temptation Foods was once reported to be close to acquiring the marine business of Hindustan Unilever Ltd but the deal fell through.
With the acquisition of this firm in southern India, TFL could add Rs350-400 crore in revenues through marine exports alone in a full year of operation, Kumar said.
TFL is also in close talks with a couple of companies in the frozen food sector for acquisition. “We will complete our third acquisition by January-end,” he said but declined to disclose the name of the company.
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First Published: Sun, Dec 30 2007. 02 18 PM IST