Restaurant Franchise Opportunities

Partnership Sep, 16 2014

Everstone Capitals together with HUL is in talks to run Modern Foods

The deal values the bakery business anywhere between Rs 200 crore and Rs 250 crore.

By Franchise India Bureau
Everstone Capitals together with HUL is in talks to run Modern Foods

Hindustan Unilever is in talk with private equity fund Everstone Capital for equity joint venture for its Modern Foods division which makes bread and rusks under the Modern brand, three people involved with the plan told Economic Times.

"HUL wants to partner with Burger King and has approached the India franchise for a possible equity partnership. Depending on how the talks progress, a complete sellout can't be ruled out," a person with direct knowledge of the development told ET.

“The deal values the bakery business anywhere between Rs 200 crore and Rs 250 crore," an investment banker with knowledge of the development said.

Modern Foods sells variety of white, brown, milk and whole grain breads along with cream rolls, fruit breads, buns, cakes, cookies and rusks. The 42-year-old brand commands more than 45 per cent of the market share.

The retailing giant has been looking to divest its stake in the bakery business for some time now. In the past, it had explored various options, including a complete sale to strategic investors.

Since HUL bought Modern Foods in 2002 from the government under the disinvestment programme, the company had been struggling with the bakery unit as high costs and an unmanageable work force in the low margin business made it unviable.

Related: Nestle looking at partnering frozen food business

Click Here to add Comment
Please add your Comment
Rating
NEWSLETTER SIGNUP

Submit your email address to receive the latest updates on news & host of opportunities.

Most

Video

Magazines & Books

Read the latest franchising magazines and books to get comprehensive and up-to-date information on leading franchise systems, trends and more.

BOS
Recommended For You
Newsletter Signup
Submit your email address to receive the latest updates on news & host of opportunities.
Restaurant India

Copyright © 2009 - 2016 Franchise India Holdings Ltd.

The information contained herein is of generic nature only, and Franchise India is not, by means of this website or any part thereof, rendering professional advice or services. Before making any decision or taking any action that might affect your finances or business, you should consult a qualified professional advisor. Your use of this website or any of its pages or links given, is at your own risk and you assume full responsibility and risk of loss resulting from your usage. With respect to use of the website, kindly visit www.franchiseindia.com/terms.