The Tata Group announced its foray into the processed foods business with the completion of acquisition formalities of 70 per cent stake in the South-based Innovative Foods Limited (IFL) from Amalgam Group. The Rs 16.5-crore Innovative posted a loss of Rs 4 crore in the last fiscal.
The acquisition, estimated at under Rs 20 crore, has been made through Residency Foods and Beverages Limited (RFBL), a subsidiary of Indian Hotels Company Limited (IHCL).
RK Krishnakumar, vice chairman, IHCL, said: “The acquisition of Innovative Foods outlines our strategic intent for the processed foods business. We strongly believe in leveraging our in-house expertise within the group with our FMCG, F&B and retail businesses.”
The company has a presence in the various food segments through group companies like Tata Tea, Tata Coffee and Tata Chemicals (Tata Salt).
As part of its diversification plan, the Tata Group through RFBL has recently entered into an exclusive agreement with Jasper Aqua Exports, a seafood company based in Visakhapatnam.
The initiative allowed RFBL to extend its seafood products in the value-added category. As per the agreement, Jasper Aqua will manufacture products exclusively for the RFBL product portfolio.
This will help in the company’s plans for exports to the East Asian markets, among others. Currently, IFL is present in the frozen and ambient, ready-to-eat (RTE) and ready-to-cook (RTC) categories, with a range of products (seafood, parathas, samosas, spring rolls and curries) under the brand name Sumeru.
– Bangalore Bureau