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COMPANY REPORT

Jain Farm Fresh Foods buys 100% stake in Belgium-based Innovafood N V
Thursday, 01 March, 2018, 08 : 00 AM [IST]
Our Bureau, Mumbai
Jain Farm Fresh Foods Ltd (JFFFL), a subsidiary of Jain Irrigation Systems Ltd (JISL), has acquired a 100 per cent controlling stake in Innovafood N V Belgium with its affiliated companies. Due to this acquisition, JFFFL’s range of products would reach European markets along with Asian countries. Therefore, the quality output of dehydrated onions, garlic and other vegetables, and the newly-launched spice business, will enable the expansion of the total business.

JFFFL is the largest fruit and vegetable processing company in the world. It has been the largest processor of mangoes in the world and processes onion and garlic for dehydration. The company’s product portfolio is very wide and includes aseptic, dehydrated, individual quick frozen (IQF), frozen and humidity-lessened vegetables and different spices produced in different geographies.

It acquired 100 per cent equity shares of the Belgian firm, which is headquartered in Antwerp, and its affiliated companies. Founded in 2000, Innovafood is a leading importer, stockiest and distributor of food ingredients and has become one of the leading players in the dehydrated vegetable, spice and other food ingredient sectors in Belgium, The Netherlands, France and other neighbouring countries.

Innovafood has developed an unparalleled, high-quality and long-term supply chain and supplier relationships in India, China, the United States, the European Union (EU), Morocco, Indonesia and Uzbekistan. It also enjoys a very strong and long-term customer loyalty in the markets it operates in. It offers a large basket of key food ingredients of dehydrated vegetables, herbs, spices and spice extracts, freeze-dried products, natural food colours, bio-products, etc. Large customer base includes the food processing industry, food blenders and re-packers, etc.

Process industry in the world market
For the last three years, the compound annual growth rate (CAGR) of Innovafood was more than 12 per cent. Due to acquisition of Innovafood, it is vertical integration for JFFFL in key growth markets within EU. It will push the sales and distribution of spices from Jain’s recently-launched spice business in India. There are new markets available for JFFFL’s food ingredient products.

There are cost optimisation opportunities by aligning the supply base and distribution network between Jain’s United Kingdom-based food business and Innovafood N V, which consists of profitable operations managed by eight full-time employees.

Innovafood’s existing management of would continue and drive future growth. It has been exclusive distributor of JFFFL for the last 15 years, in Belgium the Netherlands and Luxembourg (Benelux) and France markets for some of the key food ingredients supplied by JFFFL.

This acquisition aligns with another similar strategic investment in the UK by JFFFL into a similar business, which covered the British Isles. It was made seven years ago, and till date, its performance is very impressive performance.
This acquisition will help JFFFL to get a step closer to the market, have a direct presence in the large food ingredient market, bring cost efficiencies by optimising the supply chain and provide market access and further value addition opportunities in the food ingredient market directly.

No government or regulatory approvals are required to complete this transaction.

Box

“It is very happy news for Jain Industrial Group that Jain Farm Fresh, a Jain Industrial Group company, has acquired Belgium’s Innovafood. This acquisition would prove very useful for the expansion as well as reaching out to more new customers. There is no doubt that Innovafood would become a much larger entity under the Jain umbrella,” said Ashok Jain, chairman, Jain Irrigation Systems Ltd, Jalgaon.

“We are delighted to be able to make the investment in a very dynamic, growth-oriented company. Jain and Innovafood have enjoyed a very close relationship in the past. This acquisition is very important from the point of view of Jain Farm Fresh Foods Ltd,” stated Anil Jain, chairman, JFFFL, Jalgaon.

“For the last 15 years, Jain has been one of our key suppliers from India. Now this relationship has been further strengthened. These are exciting times for Innovafood, as it has shown impressive business growth in past few years. With Jain Farm Fresh Food’s dehydrated vegetables and newly-launched spice business, Innovafood now have a much bigger product portfolio that allows us to provide better value and service to our loyal and discerning customers,” said Michel Driessens, founder and chief executive officer, Innovafood N V Belgium.
 
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