Pantaloon - Buys Food Company

Pantaloon - Buys 33% In Capital Foods

Indivision Capital, a private equity fund belonging to Pantaloon Retail’s arm, Future Capital — the latter is the holding company for Pantaloon’s private equity funds — has picked up 33% stake in processed foods company, Capital Foods, makers of brands like Smith & Jones and Ching’s Secret and a leading private label supplier to several big retailers abroad like Target, Tesco. The company is also a major supplier to traditional formats although most of the growth is driven by organised retail. Ajay Gupta, the managing director, confirmed the move. “It will help us grow faster. Currently, we are growing at more than 40% every year and want to reach the Rs 100 crore mark in a few months time,” he said.

The promoters of the company will hold 67% after the transaction and the remaining 33% will be owned by Indivision. Currently, the company has a turnover of around Rs 40 crore. The company has a manufacturing facility to make ready to eat meals plant at Kandla for products like ketchup, chutney and cooking pastes.

Mumbai-based Capital Foods focuses primarily on the convenience and impulse foods market. The convenience foods market is growing at a hefty 35-40%, both in the urban markets and smaller cities. The strategy of Indivision is to pick up stake in small and medium sized companies as a strategic investor and help them scale up to a national level. “We are the first food processing company in Asia and the ninth in the world to get an ISO 22,000 certification and also have a British Retail Consortium (BRC) audit. Apart from the technology, quality is a critical aspect to cater to global consumers in the exports market,” Mr Gupta said.