Coca-Cola eyes to gain foothold in rapidly growing cafes space

Agro Tech Foods Limited (ATFL) has completed the acquisition of Del Monte Foods Private Limited (DMFPL), marking a key development in its expansion strategy. The combined turnover of ATFL and DMFPL in FY24 was approximately Rs 1,300 crore, with DMFPL contributing around 40 percent to this total and 38 percent to the EBITDA of the merged entity.  

Following the acquisition, Bharti and Del Monte Pacific Limited (DMPL) have become shareholders in ATFL through a preferential allotment of equity shares. Bharti now holds a 21 percent stake, making it the second-largest shareholder, while DMPL has a 14 percent stake. Additionally, ATFL has appointed Harjeet Kohli, Joint Managing Director of Bharti Enterprises, as a director on its board.  

The acquisition brings Del Monte’s product portfolio, including Italian foods, condiments, packaged fruits, and beverages, under ATFL’s umbrella. ATFL now holds an exclusive and perpetual license for the Del Monte brand in India. The company will also leverage Del Monte’s manufacturing and R&D facility in Hosur, Tamil Nadu, to enhance product innovation, quality control, and market distribution. The partnership is expected to strengthen ATFL’s presence in both retail and business-to-business segments, including quick-service restaurants and institutional buyers.  

Nitish Bajaj, Group Managing Director of Agro Tech Foods Limited said, “We are excited to formally welcome Del Monte India into the ATFL family. This strategic partnership strengthens our ability to offer a broader range of high-quality food products to Indian consumers. With Del Monte’s strong brand recognition and our expertise in food innovation and distribution, we are well-positioned to accelerate growth and create significant value for our stakeholders.”  

Abhinav Kapoor, CEO and Whole Time Director of Del Monte Foods Private Limited added, “The combination of the soon-to-be-rebranded Sundrop Brands and Del Monte Foods Pvt Limited marks a strategic milestone, unlocking new avenues of growth for the business. We are confident that by capitalizing on the emerging demand, leveraging our distribution network, and enhancing our operational efficiency, we can drive significant growth across product categories. This will not only boost sales but also create exciting opportunities for Del Monte employees, while delivering greater value to our customers and stakeholders.”

The Competition Commission of India (CCI) has granted approval for the acquisition of a stake in Rebel Foods by Jongsong Investments, a wholly owned subsidiary of Temasek.

According to a statement from CCI, the proposal involves Jongsong subscribing to compulsorily convertible preference shares and acquiring equity shares in the cloud kitchen unicorn, Rebel Foods. The regulatory body stated, *“CCI approves the proposed acquisition of shares in Rebel Foods Private Limited by Jongsong Investments Pte. Ltd.”*  

Earlier reports indicated that Temasek was planning a significant stake acquisition in Rebel Foods through a combination of primary equity infusion and secondary share purchases. Rebel Foods is also reportedly considering a public listing within the next 12-18 months.  

As part of this development, early investors such as Coatue Management, Lightbox, and Peak XV Partners are expected to sell part of their combined 20-25 percent stake. This transaction, estimated at $180-200 million, will enable Jongsong Investments to become Rebel Foods' largest shareholder. Currently, the startup's founders hold a 12 percent stake, while Qatar Investment Authority owns approximately 10 percent.  

Founded in 2011 by Kallol Banerjee and Jaydeep Barman, Rebel Foods operates several quick-service restaurant (QSR) brands, including Behrouz Biryani, Ovenstory Pizza, The Good Bowl, SLAY Coffee, and Wendy’s. The company generates revenue through food sales via its cloud kitchens and third-party platforms, along with delivery fees and royalties from partnerships.  

Rebel Foods reported a 42 percent reduction in net losses in FY24, bringing it down to Rs 378.2 crore from Rs 656.5 crore in FY23. This improvement was attributed to an increase in operating revenue, which rose by 19 percent to Rs 1,420.2 crore in FY24 compared to Rs 1,195.2 crore in FY23.  

This transaction aligns with a broader trend in the Indian startup ecosystem, where late-stage companies are facilitating secondary share sales ahead of their IPOs. Startups like Urban Company, Acko, and Lenskart have also witnessed similar transactions, providing partial exits for early investors.

In a strategic move to enhance its offerings in the hospitality sector, SKFS Private Ltd., a prominent player in the industry has acquired the popular restaurant brands Rajdhani, Hitchki, and Bayroute from Mirah Hospitality and Gourmet.

Co-founded by Dinakara Shetty, Chairman and Managing Director and Harish Shetty, Vice Chairman and Managing Director, this acquisition underscores SKFS’s commitment to delivering exceptional dining experiences while further diversifying its portfolio.

“The acquisition of these iconic brands marks an important milestone in our journey to redefine dining experiences across India. We look forward to integrating Rajdhani, Hitchki, and Bayroute into our portfolio and enhancing their unique offerings,” shared Dinakara Shetty.

With over three decades of experience in managing and operating luxury 5-star hotels and resorts, the company owns and operates Ramada by Wyndham (Navi Mumbai), Citrus Classic (Bengaluru) and will soon be opening Courtyard by Marriott in Lonavala. SKFS has established itself as a trusted player in the hospitality industry and is also a pioneer in providing high-quality industrial and commercial hospitality services to a diverse clientele, including exclusive establishments, corporates, clubs, institutions, industries, and other entities across India.

The acquisition of Rajdhani, Hitchki, and Bayroute aligns perfectly with SKFS’s mission to offer exceptional dining experiences to its customers. These well-established brands are celebrated for their unique culinary concepts and vibrant atmospheres, making them favorites among food enthusiasts. SKFS plans to leverage its expertise in hospitality management to enhance the operations of these restaurants while introducing innovative offerings to attract a wider audience.

“With our hospitality expertise, we’re committed to creating memorable experiences that resonate deeply with our customers and elevate these beloved brands to new heights,” added Harish Shetty.

This acquisition marks another milestone in SKFS's diversified portfolio, reinforcing its commitment to excellence in both commercial and industrial hospitality services.

Aji Nair, CEO of Mirah Hospitality and Gourmet Solutions Pvt. Ltd., mentioned, “We are proud of the legacy that Rajdhani, Hitchki, and Bayroute have built over the years. We believe that under SKFS's leadership, these brands will continue to flourish and innovate, offering even greater experiences for our loyal customers.”

Agro Tech Foods Limited (ATFL), a key player in India’s food and edible oils market known for brands like ACT II popcorn and Sundrop, has announced its acquisition of Del Monte Foods Private Limited (DMFPL), pending approvals. This transaction strengthens ATFL’s presence in the retail sector across India, allowing it to diversify and expand its product offerings under the potential new name, Sundrop Brands.

DMFPL, previously a joint venture with Bharti (59.29 percent) and DMPL India Limited (40.71 percent), will transfer ownership, making Bharti and DMPL public shareholders in ATFL. Additionally, ATFL will gain a perpetual license to the Del Monte brand for India, reinforcing its long-term position in the market.

The acquisition includes Del Monte’s extensive product lineup, including Italian products, sauces, ketchup, dips, spreads, and beverages. These additions align with ATFL’s focus on quality food solutions, allowing it to serve a broader customer base across traditional retail, modern retail, quick-service restaurants, and food services.

ATFL also acquires Del Monte’s manufacturing and R&D facilities in Hosur, Tamil Nadu, and Ludhiana, Punjab. These facilities, known for innovation and quality, will support ATFL’s expansion and the development of new products tailored to Indian consumers.

With this acquisition, ATFL has appointed Nitish Bajaj as Group Managing Director. Bajaj, with over 28 years of experience in consumer goods, has held previous roles as CEO of Piramal's Consumer Products Division and SVP of Marketing at CEAT Tyres.

Asheesh Kumar Sharma, CEO and Executive Director of ATFL said, “We are thrilled to welcome Del Monte Foods into the Sundrop Brands family. This partnership aligns perfectly with our enhanced vision of bringing joyful food experiences to the modern consumer. Working closely with Nitish Bajaj, we intend to deliver maximum value to all stakeholders.”

Harjeet Kohli, Joint Managing Director of Bharti Enterprises added, “Bharti is excited to announce the combination of ATFL and Del Monte Foods Private Limited, making Bharti the second largest shareholder. Leveraging synergies and a loyal consumer base, this transaction is set to bolster the platform’s scale and margin profile, offering a diverse portfolio to consumers and accelerating growth.”

Del Monte Pacific Limited (DMPL) added, “India has been an exciting market for Del Monte. With Sundrop Brands, we believe the Del Monte brand will reach new heights in India. This transaction supports our strategic focus on growth-driven partnerships.”

This acquisition represents ATFL’s strengthened commitment to the Indian retail market, promising growth and enhanced offerings for consumers across the country.

Singapore's sovereign wealth fund, Temasek Holdings, has approached the Competition Commission of India (CCI) for approval to acquire a stake in foodtech company Rebel Foods, which operates well-known brands such as Faasos, Behrouz Biryani, and Ovenstory Pizza.

Temasek, through its subsidiary Jongsong Investments Pte, is acquiring compulsorily convertible preference shares and equity share capital in Rebel Foods Pvt Ltd. In a notice submitted to the CCI on October 11, Temasek stated that the proposed transaction does not raise competition law concerns, regardless of how the markets are defined. 

To assist the CCI in evaluating the deal, Temasek highlighted key markets with significant horizontal overlaps, particularly in the organised food services sector across various cities in India. The transaction falls under the scope of the Competition Act, 2002, and involves the acquisition of shares and voting rights in Rebel Foods.

Rebel Foods, the cloud kitchen startup, had been in talks with Temasek to raise between $100-150 million in a new funding round. In August, Rebel Foods reported a narrowing of its consolidated loss to Rs 378.21 crore for FY24, an improvement from the Rs 656.55 crore loss in FY23. The company’s revenue from operations increased by 18.8 percent to Rs 1,420.24 crore in FY24, up from Rs 1,195.22 crore the previous year.

Founded in 2011 by Jaydeep Barman and Kallol Banerjee, Rebel Foods operates over 450 kitchens across 70 cities, making it the largest internet restaurant company globally. The company manages more than 45 brands, including SLAY Coffee, Mandarin Oak, The Good Bowl, and Wendy's, and has expanded into offline stores to boost revenue. Rebel Foods faces competition from players like Curefoods, backed by Binny Bansal, and Tiger Global-funded Eatclub.

Bikaji Foods International Limited (Bikaji), one of India’s leading ethnic snack brands, has announced a strategic investment through its wholly-owned subsidiary, Bikaji Foods Retail Limited (BFRL). The company will invest Rs 131.01 crore to acquire a 53.02 percent stake in Hazelnut Factory Food Products Private Limited (The Hazelnut Factory), a café and artisanal sweets brand based in Lucknow. The investment will take place over the next two years, to expand Bikaji’s presence in the Quick Service Restaurant (QSR) and premium bakery sectors.

With this acquisition, Bikaji plans to broaden its product range by incorporating premium bakery and patisserie offerings. It also enhances its café menu to cater to changing consumer preferences in India’s retail market. The Hazelnut Factory operates six stores in Lucknow, with additional outlets in Kanpur and Delhi, offering a combination of specialty coffee, artisanal sweets, and bakery items.

The acquisition aligns with Bikaji's strategy to build a ‘House of Brands,’ expanding its portfolio into the growing QSR market. Deepak Agarwal, Managing Director of Bikaji Foods International stated, "This acquisition marks a significant step in Bikaji’s journey to expand beyond traditional ethnic snacks and enter into retail QSR, premium artisanal sweets, and bakery segment. By integrating THF's premium offerings and Bikaji’s manufacturing capabilities, we aim to cater to unique customer tastes and preferences, establishing Bikaji as a key player in the QSR space.”

Ankit Sahni, Founder of The Hazelnut Factory added, “We are excited to partner with Bikaji. With our innovative culinary offerings and Bikaji’s strong distribution network and operational excellence, we are well-positioned to accelerate our growth. Our combined expertise will allow us to cater to a wider audience.”

This acquisition comes as the QSR segment in India is experiencing rapid growth, particularly in tier-ll and tier-lll cities. Factors such as urbanization, a growing young population, increased travel, and expanding internet access are driving demand for convenient dining options. With this investment, Bikaji is poised to leverage these opportunities and strengthen its presence in India’s evolving retail and QSR landscape.

Tilaknagar Industries Limited has announced an additional investment of Rs 13.15 crore in Spaceman Spirits Lab Private Limited (SSL), which will be spread over 18 months. This funding will increase Tilaknagar’s stake in SSL, the producer of premium Indian craft gin Samsara and craft rum Sitara, from 10 percent to 20 percent on a fully diluted basis.

The investment is part of a broader strategy that includes an option for Tilaknagar Industries to further invest or acquire additional shares in SSL based on the achievement of specific milestones and a pre-determined valuation.

In conjunction with this investment, Tilaknagar Industries, known for its top-selling brandy Mansion House, has entered into a usership agreement with SSL. This agreement will leverage Tilaknagar’s distribution network to market Samsara Gin and Sitara Rum in various states across India and internationally, enhancing SSL’s market reach and contributing additional business to Tilaknagar Industries.

Amit Dahanukar, Chairman and Managing Director of Tilaknagar Industries, stated, “The premium segment of the alco-bev industry in India has been growing significantly. We are already a market leader in brandy and are looking to expand our portfolio to include promising opportunities in the craft spirits segment. This investment is expected to open new revenue streams and growth avenues.”

The Rs 13.15 crore investment will be made in tranches over the 18-month period following the signing of definitive agreements. This partnership will also grant Tilaknagar Industries the right to appoint a nominee director to the board of SSL.

Ameya Deshpande, President of Strategy and Corporate Development at Tilaknagar Industries commented, “This investment aligns with our goal of promoting Indian brands globally. The partnership supports our strategy of developing a portfolio of luxury products that appeal to both the consumer and institutional markets.”

Spaceman Spirits Lab, founded in 2020, has established itself as a fast-growing craft spirits brand in India, with its Samsara Pink Gin gaining recognition. SSL’s products are now available in over 10 Indian states and international markets including the UAE, Canada, the UK, Bahrain, Nepal, and Singapore.

Aditya Aggarwal, Founder and Managing Director of Spaceman Spirits Lab said, “We are dedicated to creating premium craft spirits and enhancing the global presence of Indian spirits. This partnership will enable us to expand our portfolio, increase our market reach, and boost sales.”

Previously, Tilaknagar Industries had invested Rs 9.75 crore for a 10 percent stake in SSL. In FY24, SSL reported a 164 percent increase in revenue and an 86 percent increase in volumes year-on-year. The new investment will be funded through Tilaknagar Industries' internal cash reserves.

Tinna Trade has announced the acquisition of Fratelli Wines, a prominent name in Indian winemaking. This strategic move, involving the issuance of 3,07,79,184 shares of Tinna Trade Ltd. to Fratelli Wines' shareholders, makes Fratelli Wines a 100% subsidiary of Tinna Trade. Following this acquisition, Tinna Trade has been renamed Fratelli Vineyards Ltd., upon completion of the necessary statutory and regulatory processes.

For the fiscal year ending March 31, 2024, Fratelli Vineyards reported a net revenue of Rs 215.6 crore and an EBITDA of Rs. 28.6 crore, with 70 percent of its revenue coming from premium offerings. This acquisition positions Fratelli Vineyards for significant growth and expansion in the Indian wine market.

“We are delighted to reimagine Tinna Trade as Fratelli Vineyards. We have been building our vineyards, brands, and a unique integrated ‘grapes to bottle’ model since 2007. Today, the business is poised for strong and sustained expansion with an attractive portfolio of brands. As a focused entity, Fratelli 2.0 is getting future-ready. Being listed creates an opportunity for the shareholders to participate in the value creation journey backed by our strong experience in the lifestyle/business of wine," said Gaurav Sekhri, Managing Director of Tinna Trade.

Fratelli Vineyards is renowned for its luxury wine brands like J’Noon and Sette, which are category leaders in India. Since its inception as a family-backed vineyard, Fratelli has made significant strides in the wine industry, earning recognition among oenophiles and premium hospitality brands across the country for the quality of its wines. The business is well-positioned for robust growth with a sharp focus on brand development and new product launches.

The share swap was executed in full compliance with regulatory guidelines, underscoring a commitment to integrity and excellence. As part of the strategic plan, Tinna Trade's current agricultural and non-agricultural trading operations have been phased out, allowing the company to focus entirely on the winemaking industry.

Global online food ordering and delivery marketplace, Delivery Hero, has agreed to buy Middle East food delivery platform, Carriage. 

Niklas Ostberg, CEO, Delivery Hero, said, "Kuwait-based Carriage, which operates in the Gulf Council countries, would strengthen Delivery Hero's foothold in a region with significant growth potential."

The financial details of the deal remain undisclosed by the parties.

Major investors in Delivery Hero include Germany's, Rocket Internet and South African media and e-commerce firm, Naspers.

Mexico’s largest food and bakery company, Grupo Bimbo has entered into the Indian market with the acquisition of a controlling stake in India’s bread and bakery products maker, Harvest Gold.

The deal, which values Harvest Gold at around Rs 340 crore ($50 million), will give Grupo Bimbo a 65% stake in the company. This is the first instance of a global company buying a controlling stake in an Indian bread and bakery manufacturer.

Harvest Gold Industries operates various brands under various entities such as Ready Roti India, Food Magic India, Rhodanthe Foods and Mindscape One Marketing.

As per the sources, "The Mexican group wants to expand its base in Asia, and as India offers a huge opportunity, the group has decided to grow inorganically here."

Group Bimbo also has an arrangement to acquire more stake in the company going forward, said another source.