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Vadodara-based frozen foods supplier, Saraf Foods Ltd has set its eyes on the frozen food consumer segment with its own brand 'PureBitez'. The company is currently expanding its freeze-drying capacities besides diversifying into air drying for the bulk consumers with fresh fund infusion through a mix of investors including existing investors as well as Danish Investment Fund - IFU.
In its second round of fund raising, Saraf Foods raised Rs 30 crore from a consortium of investors comprising the Saraf family, PEDORIA and DSG Consumer Partners and Danish Investment Fund - IFU.
“Until 2013 we did not raise funds through private equity players. This is our second round of fund raising through PEs and investors. The promoters holding in the company continues to be majority. The latest round will push up the capacities and help us diversify in air-drying. Once our capacities go on stream latest by August this year, we plan to focus on the consumer segment and strengthen our existing brand of 'PureBitez'," said Suresh Saraf, managing director, Saraf Foods.
In 2013, Saraf Foods raised Rs 10 crore from DSG Consumer Partners, also involving a term loan from the State Bank of India. The company, which sells the ingredients to the food industry, is in the process of integrating Individual Quick Freezing, adding capacity to freeze drying and diversify into air drying.
Looking at the potential and growth of the segment, Saraf Foods has set a target of Rs 100 crore in revenues, which is over 200 per cent growth from Rs 30 crore in 2017.
“The funds raised will bolster our upcoming project. The new unit, which will come up near the existing facility, will commence operations from end of June 2018," said Saraf.
The independent government-owned Danish fund IFU co-invests with companies as well as developers wishing to supply technology to, develop or operate businesses within the entire agribusiness value chain from farm to fork. It also offers risk capital and advice for agri-business projects in developing countries and emerging markets.
Rohit Goyal, Senior Investment Manager at IFU will also joinas a member of the board at Saraf Foods Ltd.
IFU or the Investment Fund for Developing Countries has assisted over nearly 900 Danish companies and provides risk capital and professional advice in markets like Asia, Africa, Latin America and parts of Europe.
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