Cremica Food Industries raises US$ 15 million

Mumbai: Cremica Food Industries Ltd, a Ludhiana-based food products company, has raised $15 million from Rabo Equity Advisors, investment advisors for India Agri Business Fund II (IABF-II), for divestment of a minority stake to the fund.

Cremica, which is known for its sauce, condiments and snacks, is looking to achieve sales of Rs.1,000 crore by 2020 from Rs.200 crore in financial year 2015 and has been valued aggressively, given the huge growth potential, said Akshay Bector, chairman and managing director, Cremica Food Industries to Mint. He, however, did not disclose the profits or the valuations of the company.

This is Cremica Food Industries’ first round of funding, following the split of the family-held business by the three brothers last year in two separate companies—Mrs. Bector’s Food Specialties Ltd run by the eldest and youngest of three brothers, Ajay and Anup Bector, respectively, and Cremica Foods run by third brother Akshay.

The funding will be used to expand its distribution network to 120,000 outlets in three years from 40,000 at present, making it a pan-India company from a primarily North-based company. In the coming years, the company will also expand its manufacturing capacity at its existing complex at Phillaur and set up a food park and manufacturing plant in Himachal Pradesh.

IABF-II is a $200 million private equity fund targeted at expansion and growth of Indian food and agribusiness companies in India by Rabobank along with other investors. This is the first investment by the fund.

Rabo Equity Advisors advises two funds in India, IABF-II and IABF-I (India Agri Business Fund I). IABF-I is a $120 million fund which is fully invested in companies like Prabhat Dairy Ltd, which recently came out with its initial public offering, LT Foods Ltd and Daawat Foods (P) Ltd, to name a few.

“Rabo Equity is delighted to invest in Cremica and believes that under the leadership of Akshay Bector, Cremica shall become a strong household brand when it comes to sauces, condiments, and snacks,” said Rajesh Srivastava, chairman and managing director, Rabo Equity Advisors.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.