Tata, Dabur are selected bidders for Complan

Image Source: Kraftz Heinz India

Aug 4, 2018

In the second round of bidding, Kraft Heinz Co. has narrowed down the list of bidders for a portfolio of Indian businesses it’s sells which includes children’s milk drink ‘Complan’. Kraft Heinz Co. has selected TATA and DABUR selected for the second round of bidding, according to the company person. The bidding procedure has also drawn interest from an arm of Cadila Healthcare Ltd. and other potential buyers.

Tata Group, India’s biggest conglomerate is considering doing any potential deal through listed unit Tata Global Beverages Ltd, and Dabur India Ltd., the $11.3 billion consumer-goods company is yet put forth words.

Kraft Heinz has been seeking about $1 billion for the assets and in addition to the Complan product, the business bid includes the Glucon D instant energy drink, Sampriti clarified butter and Nycil Powder.

Any transaction would add to the $11.9 billion of acquisitions of Kraft Heinz targeting the Indian consumer industry this year, data compiled by market analysis suggested.
The bidding price by Kraft Heinz indicates more than 20 times earnings before interest, taxes, depreciation and amortization. Some potential bidders have cringed away at the valuation, due to what they foresee as lower and slow growth prospects for certain products amid changing tastes of Indian consumers, a source said.

An uncertainty lies amongst the bidding offers and the final decision is with Kraft Heinz to keep the business or sell it.

 

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