Personal care products maker VVF is looking at diversification into the food business. The Rs 675 crore (Rs 6.75 billion) company is currently eyeing buyouts in India.
In the past couple of months, the Mumbai-based oleochemicals to personal care company has acquired Colgate's manufacturing facility in Kansas, USA and Teo Corp in Canada. Both these acquisitions have helped the company to increase presence in the personal care space and become a competitive contract manufacturer that caters to private labels in the US.
Piyush Jindal, senior vice-president, personal care, VVF, said the company was on the lookout for acquisitions either in the personal care business or in the foods space.
"If we find brands complementary to our existing personal care products, we would look at acquiring it," he said, adding that foods, both branded staples and processed food was also on the company's radar. The company is said to have considered recent opportunities in both categories, but valuation and market positioning were deterrents.
Internationally, the company is exploring opportunities in the haircare and hair colourants segments. The move for FMCG companies to have a personal care and foods portfolio is not new. Internationally, Unilever and Procter & Gamble have strong food brands like Knorr and Pringles respectively. Even Indian companies like Marico Industries and Cavin Kare have a portfolio of foods and personal care products.
Apart from diversification strategy, VVF