Future Consumer to exit salon chain, acquire MNS Foods
Indian venture capital firm Future Consumer Enterprise (FCEL) will exit its salon subsidiary Star & Sitara, and to acquire a controlling stake in confectioner MNS Foods.
In a stock market filing, FCEL said it would acquire a 51% stake in MNS through the purchase of new shares for an undisclosed sum. It did not say when or how it would exit Star & Sitara.
The firm - at the time called Future Ventures - bought Star & Sitara from Pantaloon Retail in 2012 for INR100,000 ($1,600). Since the purchase it has invested a further INR180 million, but the chain has continued to lose money. For the year ending March 2014 it reported a net loss of INR110 million.
The Star & Sitara venture was a departure for FCEL, which focuses on opportunities in the consumer sector, particularly food, fashion, fast-moving consumer goods and rural distribution. It has stakes in several convenience store chains, including Nilgiri's, in which it bought a 98% stake from Actis for a reported INR3 billion in 2014.
MNS, based in Bangalore, primarily produces and sells cookies and other desserts. Its acquisition fits with FCEL's recent efforts to refocus on its food products businesses.
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