India, Feb. 7 -- Agro Tech Foods, "ATFL" or "Company" is pleased to announce the successful completion of its acquisition of Del Monte Foods (DMFPL), marking a significant milestone in its expansion strategy. ATFL and DMFPL had a combined turnover of ~INR 1,300 Cr in FY24, ~40% of which is on account of DMFPL with its contribution to the EBITDA of the combined entity in FY24 at ~38%. ATFL's completion of the acquisition of DMFPL solidifies ATFL's position as a leading player in India's food and FMCG sector. With this, Bharti and Del Monte Pacific Limited (DMPL), have become shareholders of ATFL following the completion of a preferential allotment of equity shares of ATFL, with Bharti becoming the second largest shareholder with ~21% stake and DMPL having ~14% stake in ATFL.
ATFL has also appointed Harjeet Kohli, joint managing director Bharti Enterprises, as a director on the board of ATFL, a move initiated by ATFL to further strengthen the Board.
The partnership brings Del Monte's diverse portfolio of food products, including its popular Italian foods, condiments, packaged fruits, and beverages, under ATFL's expanding umbrella. Additionally, ATFL now holds an exclusive and perpetual license for the Del Monte brand in India, ensuring continued growth and long-term brand equity. The state-of-the-art manufacturing and R&D facility in Hosur, Tamil Nadu, a key asset in Del Monte's success, will further enhance ATFL's operational capabilities, enabling new product innovation, quality control, and enhanced market distribution. This partnership aligns with ATFL's commitment to deliver innovative, delicious and convenient food solutions to consumers across India, in both the retail and business-to-business segments, including quick-service restaurants and institutional buyers.
Commenting on the successful completion of the acquisition, Nitish Bajaj, group managing director of Agro Tech Foods, stated,"We are excited to formally welcome Del Monte India into the ATFL family. This strategic partnership strengthens our ability to offer a broader range of high-quality food products to Indian consumers. With Del Monte's strong brand recognition and our expertise in food innovation and distribution, we are well-positioned to accelerate growth and create significant value for our stakeholders."
Abhinav Kapoor, chief executive officer and Whole Time Director of Del Monte Foods, stated, "The combination of the soon to be rebranded Sundrop Brands and Del Monte Foods Pvt Limited marks a strategic milestone, unlocking new avenues of growth for the business. We are confident that by capitalizing on the emerging demand, leveraging our distribution network and enhancing our operational efficiency, we can drive significant growth across product categories. This will not only boost sales but also create exciting opportunities for Del Monte employees, while delivering greater value to our customers and stakeholders."
Published by HT Digital Content Services with permission from FoodTechBiz.