Prataap Snacks Ltd, the Indore-based listed snack manufacturer, on Wednesday announced the acquisition of Avadh Snacks Pvt Ltd, a Gujarat based snack foods company for Rs 148 crore. Prataap Snacks will be acquiring 80% in the firm through primary and secondary infusion of funds. The acquisition will help Prataap Snacks foray into Gujarat, the largest snacks market in the country.
Commenting on the development, Amit Kumat, managing director and chief executive at Prataap Snacks, said: “Prataap Snacks has been one of the fastest growing snacks food companies. Our acquisition of Avadh Snacks will help us accelerate our growth and deepen our presence in the key market of Gujarat. Gujarat is the biggest salty snacks market in India and is one of the most important markets where Prataap Snacks would like to build a presence with a strong partner like Avadh.”
Kumat further added that the product offerings of Prataap Snacks and Avadh Snacks are complementary and will help the firm in creating a “balanced portfolio with a mix of regional and national flavours and variants” across categories. “The acquisition will also lead to a significant synergy in distribution across Gujarat and neighbouring markets,” he said. Prataap Snacks’s products include nachos, namkeen, chips and corn puff among others.
Rajesh Savani, founder of Avadh Snacks said, “Avadh is well positioned to penetrate deeper in its home market and expand further in new geographies and products. We at Avadh are delighted to have Prataap Snacks lead us on this exciting journey in the Indian packaged food industry.”
Source: Mint