Image Source: My Share bazaar
Aug 25, 2018,
Indore-based Prataap Snacks Ltd, has recently declared the acquisition of Avadh Snacks Pvt Ltd, a Gujarat-based snack foods company for Rs 148 crore ($21.12 million).
With a combination of primary and secondary funds, Prataap Snacks will be acquiring 80 per cent of share in Avadh Snacks. This major and calculated decision of acquisition will help Prataap Snacks foray into Gujarat which is the largest snacks market in the country. This will create a major foot-hold for Prataap Snacks for growth in namkeen sector.
Commenting on the development, Amit Kumat, managing director and chief executive at Prataap Snacks, said: “Prataap Snacks has been one of the fastest growing snacks food companies. Our acquisition of Avadh Snacks will help us accelerate our growth and deepen our presence in the key market of Gujarat. Gujarat is the biggest salty snacks market in India and is one of the most important markets where Prataap Snacks would like to build a presence with a strong partner like Avadh.”
Kumat further added that the product offerings of Prataap Snacks and Avadh Snacks are complementary and will help the firm in creating a “balanced portfolio with a mix of regional and national flavours and variants” across categories. “The acquisition will also lead to a significant synergy in distribution across Gujarat and neighbouring markets,” he said. Prataap Snacks products include nachos, namkeen, chips and corn puff among others.
Rajesh Savani, founder of Avadh Snacks said, “Avadh is well positioned to penetrate deeper in its home market and expand further in new geographies and products. We at Avadh are delighted to have Prataap Snacks lead us on this exciting journey in the Indian packaged food industry.”