Kraft Heinz Co has agreed to sell a portfolio of India businesses, including children’s milk drink Complan, to Zydus Wellness for around Rs 45-46 billion, people with knowledge of the matter said.
An announcement is likely as soon as this week, said sources close to the development.
Zydus was not open to inheriting the tax liabilities of the Italian holding company that houses the Indian business of Kraft Heinz. It only wanted to acquire the Indian assets. A source confirmed that Kraft agreed to its condition and Zydus would not absorb the tax liabilities.
Zydus Wellness is the personal care arm of drugmaker Cadila Healthcare. It has been in talks with Kraft Heinz for the Indian assets, which include brands Complan, Glucon-D and Nycil, for some time now.
Beverage maker Coca-Cola, too, was keen for the assets and was open to absorb the tax liabilities of the Italian holding company.
Zydus is looking to raise private equity funding to cover about half of the purchase price, one of the people said.
A representative for Kraft Heinz declined to comment. A Zydus representative didn’t immediately respond to a request for comment.
Tata Group, India’s biggest conglomerate, and consumer-goods manufacturer Dabur India were also among suitors for the Kraft Heinz businesses, people familiar with the matter had said in August.
In addition to the Complan product, the brands being sold include the Glucon D instant energy drink, Nycil talcum powder and Sampriti clarified butter, they had said.
Kraft Heinz had been seeking about $1 billion for the assets. Some potential bidders had balked at the valuation, due to what they saw as lower growth prospects for certain products amid changing consumer tastes in India, they said.
Source: Business-Standard