VKL Seasoning

May 1, 2019

IVFA to pick $40 m stake in VKL Seasoning SECTIONS By Share Synopsis Private Equity investor, India Value Fund Advisors will pick an undisclosed stake in food ingredients maker VKL Seasoning for $40 million. Private Equity investor, India Value Fund Advisors will pick an undisclosed stake in food ingredients maker VKL Seasoning for $40 million. MUMBAI: Private Equity investor , India Value Fund Advisors will pick an undisclosed stake in food ingredients maker VKL Seasoning for $40 million. Started in 1935, Vallabhdas Kanji Ltd. or VKL, as whole spice dealer, the company later expanded into private label and food ingredients businesses. In 2011, it decided to exit from the bulk spices and private label businesses via a sale to a global spice major and focus on the valued-added food ingredients space. Currently, VKL manufactures food ingredients and flavouring solutions in India and the Middle-East with a strong focus on the quick service restaurants (QSR) and processed food industries. Vishal Nevatia, managing partner, IVFA said “This deal complements well the IVFA investment philosophy of going beyond infusing needed capital by bringing in high quality talent, professional management practices and systems that can transform the business. VKL has an impressive customer base, a strong knowledge of the local palate and we strongly believe it is well positioned to benefit from a robust growth in the underlying QSR and processed foods industries.” Ajay Mariwala, managing director, VKL said, “Our goal is to enhance our product offerings substantially over the next few years in related food segments with the growth coming from a combination of organic and inorganic initiatives. This funding will help us grow our domestic capacities and expand business development efforts in the Middle East & Africa.” Haresh Chawla and Vikram Nirula, partners at IVFA will join VKL’s board of directors. Avendus Capital and DSK Legal were the advisors on the deal. According to individual reports published by Rabo Bank and by Assocham India, the QSR segment is worth $600 million in India and is expected to grow at an annual rate of 30% until 2015, while the packaged food industry growing about 15-20% annually is likely to touch $30 billion by 2015, respectively. Read More News on