True North Capital to Sell its Majority Stake in VKL Seasoning

India’s top manufacturer of seasoning and flavours VKL Seasoning is in talks with global flavor and fragrance makers to acquire stake in the former’s seasoning and flavor business.

According to a media report,  around six companies including Swiss fragrance majors Givaudan and Firmenich, German firm Symrise, Ireland-based Kerry Group and Japanese major Takasago, have shown interest in acquiring majority stake in VKL Seasoning.

The report also stated that the bids will be submitted soon and two to three will be shortlisted in a month. True North, which invested about $40 million in 2013, is seeking a valuation of $140 million (?1,000 crore) for VKL Seasoning.

Also, it is believed that True North Capital which invested over $40 million in 2013 in the Kerala based ingredient maker is selling its majority stake in VKL Seasoning.

The group has also hired investment bank Avendus to manage the sale.

Known for its ingredients and flavouring business in India and the Middle East, VKL has strong focus on the QSR and processed food industries.

Started in Alleppey, Kerala, in 1935 as a whole spice dealer and later expanded into a private label and food ingredients businesses, VKL had sold its bulk spices and private label assets to Olam International in 2011. VKL is flagship company of Mumbai-based Kanji Moorarji Group.