BENGALURU: Baroda-based specialty aroma chemicals company Best Value Chem (BVC) said Premji Invest will acquire a controlling stake in the company.
The transaction involves the selling of stake by existing shareholders and a commitment to infuse the primary capital for capacity expansion to meet increasing demand from its global customers, BVC said.
With the backing of Premji Invest, BVC aims to "move up the value chain and consolidate our position in the Indian Aroma chemical market", said Shaju C.O., chief executive officer, BVC.
“India is at the tipping point of growth in manufacturing of specialty chemicals and aroma chemicals in particular due to favourable government policies for Make in India and the creation of chemical parks. Recent supply chain disruption from China, including events related to covid-19 and an increase in domestic demand for end-use applications, are acting as significant drivers of growth for the industry," Shaju said.
Founded in 1997, BVC’s customers include all major players of the flavours and fragrances (F&F) industry like Firmenich, Symrise, Takasago and other global FMCG players.
BVC is owned by a group of investors led by Sanjay Patel and his family along with Shaju who will continue to lead the company as the CEO and would also be a minority stakeholder in the company.
Premji Invest is the investment arm of Azim Premji's endowment and philanthropic initiatives that has been active in investing in the Indian markets for over ten years with large investment corpus. The focus of investments has been to grow medium-sized Indian companies into large companies that can compete globally.
“The Indian consumer industry will grow significantly over the next decade. It needs companies like BVC to meet their high-quality requirements. There is a tremendous export opportunity for Indian players in global F&F market as it is at the cusp of accelerated growth," Premji Invest said in a statement.
Investments of Premji Invest are across sectors like consumer, financials, technology, and manufacturing spanning across companies such as Fab India, ID foods, Lenskart, Policy Bazaar, Flipkart, and Shubham Housing.