Mumbai-based subsidiary of the German company Oetker Group, Oetker India is likely to acquire Delhi-based Fun Foods and VRB Foods, makers of pizza toppings and mayonnaise, for Rs 1.1billion, according to company officials. Oetker India, was set up in 2007 and has launched some products like baking mixes and frozen pizzas in Mumbai.
“Oetker India has got approval from Foreign Investment and Promotion Board (FIPB) to act as an operating-cum-holding company. This will allow the company to invest Rs 1.28 billion in the two processed food firms. The company would acquire Fun Foods for about Rs 1.04 billion and 100 per cent stake in VRB Foods for Rs 30 million. Another Rs 30 million would go towards subscribing to warrants” said a company official.
While, Fun Foods manufactures 60 products for the retail market and over 40 products for the institutional requirements, Oetker Group has interests in food, beer and non-alcoholic beverages, wine, shipping and has presence across the world. The client list of Fun Foods includes Yum Restaurants (Pizza Hut and KFC), Subway TM, Barista, Dominos Pizza, Pizza Corner, Java Green, Costa Coffee, Yo china!, Mother Diary, and Taj Air Caterers.
— IndiaRetailing Bureau