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Prataap Snacks to acquire 80% equity stake in Avadh Snacks for Rs 148 cr
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Saturday, 25 August, 2018, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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Prataap Snacks Ltd (PSL), one of India’s fastest growing snack foods companies, has announced the acquisition of Avadh Snacks Private Limited, Gujarat’s leading snack food company. PSL has agreed to acquire 80 per cent equity stake for a consideration of Rs 148 crore through a combination of primary and secondary investment.
Avadh Snacks Pvt Ltd, promoted by Rajesh Savani, Dilip Lalani and Neel Jagani, is engaged in the manufacturing and selling of branded packaged snacks under the brand name, Avadh.
Started in 2010, Avadh now has a well-diversified and strong product portfolio for namkeens like bhujia, chevda, fafda, gathiya, etc., and extruded pellets like wheels, cups, pasta, etc. It has a strong presence in the state of Gujarat and is now expanding to Maharashtra and Rajasthan.
Amit Kumat, managing director and chief executive officer, Prataap Snacks Limited, said, “I am very excited about this partnership. PSL has been one of the fastest-growing snack food companies. Our acquisition of Avadh will help us accelerate our growth and deepen our presence in the key market of Gujarat.”
“We are impressed with the founders and the velocity of growth of Avadh’s business since inception. Gujarat is the biggest salty snacks market in India, and is one of the most important markets where PSL would like to build a presence with a strong partner like Avadh,” he added.
“The product bouquet of PSL and Avadh are complementary and will create 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,” Kumat said.
On the recent investment made by Prataap Snacks, Savani said, “Avadh is well-positioned to penetrate deeper in its home markets 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.”
Intensive Fiscal Services Private Limited, a Mumbai-based investment bank with strong focus in the Indian consumer industry, is the sole syndicator and advisor to the deal.
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