Kolkata, July 28 (IANS) RP-Sanjiv Goenka Group on Friday announced acquisition of 70 percent stake in a Gujarat-based snacks company with an investment of Rs 440 crore, terming it as the group's entry point product in the FMCG market.
"We have acquired 70 percent stake in Apricot Foods Pvt Ltd based in Gujrat's Rajkot with an investment of Rs 440 crore. The brand E Vita is going to be a brand for entry point products," group chairman Sanjiv Goenka told the reporters on Friday on the sidelines of the company's flagship company CESC.
Goenka said the acquired company has a revenue of Rs 200 crore with its own manufacturing facility in Rajkot and Hyderabad.
"We have always had a strategy where there would be three segments of FMCG products. This will be a pocket friendly snack. The Too Yum - launched by the Group in January - is for the next category and then we are also planning to come up with something organic," he said.
The brand would be owned by the company's FMCG vertical Guiltfree Industries.
Stating that their FMCG segment has seen significant growth, he said they were plans to initiate the company's own production facilities and the decision to set up greenfield manufacturing will depend on the acquisitions.
"Initially the production capacity was falling short. The demand was exceeding the productions. So now we have decided to set up production and operation facilities by March.
"We are shortlisting a few states. We are looking at Rajasthan, Uttar Prdadesh, Telengana, Uttaranchal, Bengal. However to begin with, the investment would be small. Food parks are the options that we are considering," said Goenka.
Referring to the company's already launched snack product, Goenka said he expects its sale to pick up though the numbers are still small.
"I think it is a product that is capable of selling much more depending on how the manufacturing facilities are ramped up," he said.
About their retail arm Spencer's Retail Limited, Goenka said the company has achieved the first cash break even this year and mentioned it has become the most admired and the highest job creator in this region.
The company would also explore options in the personal care and healthcare segments.
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Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.