Aug. 14, 2009 (The Hindu Business Line) --
Speaking to Business Line at the launch of the company’s ready-to-cook food products here on Friday, a company official said that the company will not go in for an IPO now and ‘may look at divestment to the right party.’
The $3.1-billion McCormick & Co (NYSE:MKC) has a 50-50 joint venture with AV Thomas Group (NASDAQ:TGIS) to manufacture sterilised spices such as pepper, turmeric, ginger and red pepper. The Indian spices market is estimated at Rs 3,000 crore.
Private equity firm New Vernon is already an investor in Eastern Condiments, holding about 10-12 per cent share in the business. The Eastern Condiments is owned by the Kochi-based Meeran family.Eastern Food Specialty Formulations Pvt Ltd, which launched 12 ready-to-cook products, has also set up a manufacturing unit for the same in Bangalore at an investment of Rs 30 crore.
About 65 per cent of the plant's installed capacity of 1,500 tonnes per annum would be utilised in the first phase of the launch. Four variants of the Indian dal, three variants of soups, ready-to-fry batter and curry masalas were among the products launched. The new range of products is expected to add about Rs 105 crore to the company's turnover, said Mr Navas Meeran, Vice-Chairman, The Eastern Group.
