BackQatar’s Hassad Food buys majority stake in Indian firm
The firm buys stake in Bush Foods Overseas for an estimated $100 million
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New Delhi: Qatar’s Hassad Food Co., which has interests in agriculture and livestock companies across the globe, has acquired an undisclosed majority stake in New Delhi-based Bush Foods Overseas Pvt. Ltd for an estimated $100 million.
This is the Doha-based company’s first investment in India and it is scouting for more deals.
“We will use these investments to grow our brands both in the domestic as well as the international markets," Virkaran Awasty, chairman and managing director of Bush Foods, said in a statement.
Bush Foods, which had a revenue of $235 million in FY 2012, produces and exports packaged basmati rice under the Neesa, Himalayan Crown and Indian Star brands to more than 70 countries. It also entered the ready-to-cook microwave foods and spices category 15 months ago.
Acquisition of Bush Foods by the Doha-based firm has also provided successful exit to Standard Chartered Private Equity (SCPE), the PE arm of Standard Chartered Bank, that had invested ₹ 110 crore in Bush Food in 2011. SCPE has exited its investment in Bush Foods with 3x returns. However, Rahul Raisurana, managing director, SCPE, declined to comment.
While this is the first investment of Hassad Food in India, it also for the first time that any Qatar-based firm is acquiring a majority stake in an agri-business in India. Hassad Food is actively looking at making more investments in India, said Nasser Mohamed Al Hajri, its chairman and managing director.
“India is a huge market. It’s a space where Hassad can make good investments. In fact, we are looking at some opportunities in India so far but we can’t reveal anything. These could possibly be in the food space," he said.
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