India Agri Business Fund II invests $10 million in Global Gourmet
Frozen foods exporter Global Gourmet will use the funds from India Agri Business Fund II to grow its presence in India and abroad
Mumbai: India Agri Business Fund II (IABF-II), co-sponsored by Rabobank, the UK’s CDC Group and Asian Development Bank, has invested $10 million in frozen food products exporter Global Gourmet Pvt. Ltd for a minority stake, top company officials said.
Established in 2008, Global Gourmet exports to the UK, European Union, US and Australia. It supplies its products to retailers such as Tesco, Amul, McCain, Sumeru and MTR Foods, according to the company website. Rabo Equity Advisors, a private equity firm backed by Dutch financial services provider Rabobank, is the investment advisor for IABF-II. It also advises IABF-I.
“We have acquired a respectable minority stake in Global Gourmet as the frozen food sector is doing very well and will grow at a very high rate for the next 8-10 years,” said Rajesh Srivastava, chairman and managing director, Rabo Equity Advisors. The fund will be used by Global Gourmet to grow its presence into value-added shrimps and other protein-based products and to further its presence both in India and globally, the company management said.
According to Satvik Agarwal, managing director and chief executive officer of Global Gourmet, with the latest round of funding, the company expects to grow its revenue to Rs500 crore in the next five years, from the current Rs70 crore.
“We are delighted to have IABF II invest with us to expand Global Gourmet’s capability into newer product categories and also further our presence in key markets like India, EU and the US,” said Agarwal.
With a fund size of $150 million, IABF-II invests in the food and agri-business sector. This is its first investment in the frozen food space in India.
“We are looking forward to strengthening our position in packaged foods on the basis of this investment,” said Srivastava.
In December last year, IABF-II picked up an about 40% stake in Olive Bar and Kitchen Pvt. Ltd for Rs100 crore. In 2016, Cremica Food Industries Ltd, a Ludhiana-based food products company, raised $15 million from Rabo Equity Advisors by selling a minority stake.