Financial Daily from THE HINDU group of publications
Tuesday, Apr 08, 2003
Financial Daily from THE HINDU group of publications Tuesday, Apr 08, 2003 |
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Corporate
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Announcements Vadilal scotches takeover rumours — Scouting for partners in processed foods arm Ratna Bhushan
NEW DELHI, April 7 VADILAL Industries Ltd (VIL) has denied that it is in talks with Nestle India Ltd or any other multinational for offering a substantial stake in its ice-cream business. "Vested interests in the industry speculate about Nestle or other MNCs buying out our business, at the onset of every season. We are not in talks with anybody and those circulating such rumours are only trying to weaken our brand name," Mr Rajesh Gandhi, Managing Director of the Rs 96-crore, Ahmedabad-based company told Business Line. Mr Gandhi said that VIL plans to invest close to Rs 7 crore during the current fiscal to consolidate and expand its operations in the domestic market, besides strengthening its cold chain network. The investments will also be infused for consolidation in plant and machinery, besides sales generating assets. "We are undertaking these investments entirely through our internal resources. There is no infusion of funds from outside investors for our ice-cream business," he stated. At the same time, Mr Gandhi added that the company was still looking for a strategic investor for its processed foods division. The company had appointed Ernst & Young early last year to scout for a partner for this business. However, according to Mr Gandhi, there has not been much headway in this direction. Meanwhile, the company proposes to set up an additional five parlours (termed `Happinezz' parlours) in the northern region in the current calendar year, beginning with the Delhi market, Mr Gandhi said. These parlours will be operated through franchisees. Vadilal Industries currently operates through 100 Happinezz parlours spread across Gujarat, Rajasthan, Uttar Pradesh and Madhya Pradesh. On the product front, additional fruit-flavoured ice-creams are on the launch block this season. The company is currently running a spate of promotions across all cities it is present in, to encourage trials for its new flavours, Mr Gandhi said. The company expects to close fiscal 2003-04 on a turnover of Rs 125 crore, Mr Gandhi said. While the biggest division of the Rs 200-crore Vadilal group remains ice-creams, the group's processed foods and chemicals and industrial gases division currently contribute Rs 30 crore each to its turnover. Vadilal's processed foods division processes and markets fruits, vegetables and ready-to-serve Indian meals. The division also exports to the European Union, West Asia and the US. Vadilal Industries currently has three manufacturing facilities; two of these are in Gujarat while one is in Uttar Pradesh.
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