Basmati rice distributor Kohinoor Foods Ltd has formed a joint venture with the US-based food and seasonings maker McCormick and Company to market and sell its (Kohinoor’s) basmati rice and food products in India.
McCormick will hold 85 per cent stake in the joint venture and it will invest a total of $115 million. The new joint venture will market and sell ‘Kohinoor’ brand rice and food products in India.
“The company proposes to transfer its undertaking relating to the business of manufacturing, processing, finishing, marketing, trading, distributing, importing, exporting and/or supply of food products” Kohinoor Foods said in a filing to the Bombay Stock Exchange.
The company will also transfer all its assets and liabilities, employees, contracts, licences, agreements, etc, as a going concern or otherwise, it added.
The transfer is being made to a joint venture to be named Kohinoor Speciality Foods India Pvt Ltd that KFL has agreed to from with McCormick.
The agreement is expected to be completed later this year subject to regulatory and other approvals in India, McCormick said in a statement.
Kohinoor Foods manufactures and distributes rice as well as cooking pastes, spices, seasonings and frozen foods in India, while McCormick is into manufacturing, marketing and distribution of spices, seasonings, specialty foods and flavorings.
Meanwhile, the shares of Kohinoor Foods were ruling at Rs 53.65, up by 0.56 per cent, in the afternoon trade on the BSE.