Rice exporter Kohinoor Foods today said it has completed the Rs 520-crore deal with US-based spice maker McCormick to set up a joint venture for marketing basmati rice and other food products in India.
In the joint venture Kohinoor Speciality India, McCormick has 85 per cent stake and rest is with Kohinoor Foods.
“McCormick today completed the formation of joint venture with Kohinoor Foods to market and sell basmati rice and food product in India. The venture was announced in June 2011 and will now be named as Kohinoor Specialty Foods India Pvt Ltd,” McCormick said in a statement.
“McCormick had invested a total of Rs 520 crore ($113 million) in the deal and thus commands an 85 per cent interest in Kohinoor Specialty Foods India,” it added.
McCormick expects the joint venture sales at $85 million in the first year. Mr Satish Rao, who has been associated with McCormick for the past 16 years, will be the Managing Director of the joint venture.
The joint venture will have about 275 employees and a modern production facility at Bahalgarh in Haryana, which has been transferred from Kohinoor Foods into the joint venture.
With more than $3 billion in annual sales, McCormick manufactures, market and distributes spices, seasoning mixes and condiments to the entire food industry.
This is the McCormick’s third investment in India. It first joined hands with AV Thomas Group in 1994. In 2010, McCormick acquired a 26 per cent stake in Eastern Condiments Ltd, which has become a leading brand of spices, seasonings and other related food products in India and West Asia.