Kishore Biyani, CEO, Future Group, has sold his 44.5 per cent stake for Rs 180 crore in Capital Foods held by group company Future Consumer Enterprise (previously known as Future Ventures). In the recent past, the group also sold its stake to private equity players in apparel firms AND and Biba.
Addressing a press conference, Biyani, said, “We have sold our investment in Capital Foods to a European foreign private equity.” Family-owned Belgium group Artal has picked up the 44.5 per cent stake, while the balance is held by promoters of the company.
Capital Foods is the maker of Ching's Secret instant Chinese noodles, soups, condiments, curry pastes and frozen entrees, along with the Smith & Jones range of niche sauces and baked beans.
Ajaay Gupta, MD, Capital Foods, said, “The promoters of Capital Foods have always held a controlling stake and will continue to do so after the Future Group sells its stake in the company to a new investor like Artal. It is a pure investment made by the family-owned Belgium firm.”
Capital Foods, however, would continue to hold 26 per cent stake in the Future Group-owned Food Park Pvt Ltd at Tumkur near Bangalore.
To build food and beverage portfolio further, Future Consumer Enterprise has forged a long-term licensing agreement with Sunkist. Sunkist is a citrus marketing co-operative and a leading licensor based in California with presence across 86 countries. In India, the company is expected to launch a range of sparkling beverages, fruit juices and drinks which would be priced at a premium compared with existing brands such as Fanta, Miranda or Tropicana. “We expect the Sunkist brand to record Rs 200 crore sales turnover by the second year of launch. It would be based on a royalty payment,” added Biyani. Sunskist will be sold through the general trade and Future Group-owned outlets such as Food Bazaar and Aadhar.
purvita@thehindu.co.in