Swiss fragrance and flavour company Firmenich has acquired a majority stake in VKL Seasoning from Indian private equity fund True North.
The financial terms of the deal were not disclosed. True North, which invested about $40 million in 2013, was looking at a valuation of $140 million (Rs 1,000 crore) for VKL Seasoning, ET reported in February.
VKL Seasoning will retain its brand identity and will operate as a standalone business within Firmenich, the world’s biggest privately owned company in the perfume and taste business said in a statement on Tuesday.
Founded in 1996, VKL Seasoning is India’s leading manufacturer of seasonings and flavours.
Six companies, including Givaudan and Firmenich from Switzerland, Germany’s Symrise, Ireland-based Kerry Group and Japan’s Takasago had expressed interest in acquiring a majority stake in VKL Seasoning, ET reported in February.
VKL manufactures food ingredients and flavouring solutions in India and the Middle East with a strong focus on quick service restaurants and processed food industries.
“India is a critical market for Firmenich and we are committed to investing in our business here both for short and long-term growth,” Chairman Patrick Firmenich said in the statement.
“By combining our strengths, we will be able to serve our customers with renewed focus across the food sector,” said Ajay Mariwala, founder of VKL Seasoning.
Established in Kerala as a spice dealer and later expanding into private labels and food ingredients, VKL sold its bulk spices and private label assets to Olam International Ltd. in 2011.
VKL is the flagship company of the Mumbai-based Kanji Moorarji Group with other businesses including Kancor Flavours and Extracts Ltd., Omni Active Neutraceuticals and Autohangar (India) Pvt, a dealer of Mercedes-Benz vehicles in India.
About 70% of the global fragrance and flavour market is held by Givaudan, Firmenich, IFF and Symrise.
India’s food service market (organised and unorganised) was estimated at Rs 3.3 lakh crore in 2017 and projected to grow to Rs 5.5 lakh crore by 2022, according to a FICCI-Technopak report.
