PE-backed spices firm VKL in talks with Olam

Sources familiar with the matter told The Times of India that VKL's owners, the Mariwala family, have mandated an investment bank to broker a deal and that talks with Olam have reached an advanced stage. Ajay Mariwala, managing director of VKL, confirmed that the company is in the process of bringing in a strategic investor, but gave no further details.

VKL is one of Asia's leading processors of spices and spice ingredients, exporting to more than 30 countries. Singapore-based Olam, in which Temasek Holdings has a stake, is looking to expand into India's value-added ingredients business. Last week it purchased sugar mill owner Hemarus Industries for $73.8 million.

India's food ingredients industry is fragmented but lucrative - it is thought to be worth INR12 billion - and has also attracted interest from the likes of McCormick and ADM as well as Olam.

Meanwhile, the JV Mariwala Group, is increasingly focused on auto dealerships.

Ascent Capital, which was spun out of UTI Venture Funds Management by Raja Kumar, last year teamed up with Argonaut and IDFC to invest INR4.65 billion in GMR Energy, the energy division of Indian conglomerate GMR Group. In August, Ascent reportedly committed $45 million to Karaikal Port as part of a $153 million expansion plan.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Consumer
• Expansion
• Ascent Capital
• IDFC Project Equity