Mumbai-based Temptation Foods has acquired the marine foods business of FMCG major Hindustan Unilever for an undisclosed sum.
The size of the business that includes manufacturing facilities is estimated to be around Rs 250 crore (Rs 2.5 billion). The deal had already been sealed, sources close to the developments said.
Temptation Foods, the Rs 39-crore (Rs 390-million), listed, fruit and vegetables export company, will get direct access to HUL's customers across the world.
HUL's marine foods division is the largest single export vertical in the country. HUL had decided to sell it as it wanted to get out of all non-core businesses.The company had already sold its seafood processing plant in Andhra Pradesh and shut down operations in Gujarat.
"HUL's marine foods division buy would enable Temptation Foods to position itself with high-end branded food in the frozen space at a time when retail majors are making entry into India. HUL has strong presence in Europe, Japan and the US. This will give Temptation Foods a direct entry into these markets," analysts pointed out.
Recently, HUL also expanded its customer base in Europe and West Asia and developed
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