Cremica Food Industries Ltd, a Ludhiana-based food products company, has raised Rs 100 crore from Rabo Equity Advisors Pvt. Ltd, the investment advisors for India Agri Business Fund II (IABF-II), by selling a minority stake.
The funding will be used to expand Cremica Food’s distribution network to 1,20,000 outlets in three years from 40,000 at present, making the firm a pan-India company from a primarily North India-based company.
In the coming years, Cremica Food will also expand its manufacturing capacity at its existing complex at Phillaur and set up a food park and manufacturing plant in Himachal Pradesh.
This is Cremica Food Industries’ first round of funding, following the split of a well-regarded, family-held business of three brothers—Mrs. Bector’s Food Specialties Ltd is run by the eldest and youngest of three brothers, Ajay and Anup Bector, respectively; and Cremica Foods is run by Akshay Bector.
Cremica has been in the market to raise an institutional round to augment its geographical reach in retail outlets across Southern and Western India. The company had also offered to buy-back shares from its previous investors Motilal-Oswal earlier this year.