Harvest Gold looking to pump $50-60 million funding

Harvest Gold Industries Ltd., Delhi-based baker, is in advanced talks with private equity firms and strategic investors to raise around US $50-60 million funding. According to a source close to the development, the company has been discussing about the funding round with many firms including Modern brand, which is owned by Everstone Capital-backed Nimman Foods Pvt Ltd. and if all goes by the plan, it will be conducting its funding round soon.

A person familiar with the development stated that the bread and bakery firm is looking to raise somewhere between US $50-60 million from investors in lieu of an equity stake. However, spokesperson of Everstone Capital declined to comment on the development and on the other hand, Harvest Gold’s spokesperson said that investors are approaching Harvest Gold since last several years. But nothing has materialised yet.

Everstone sealed a deal to acquire the bread and bakery business of Hindustan Unilever (HUL) under the brand name ‘Modern’ last year. The size of the deal was not disclosed, but Modern’s revenue was around Rs250 crore.

The deal was completed in April this year. HUL had acquired a stake of 74 per cent in Modern Foods in January 2000 when the government sold its holding. Two years later, it bought the remaining stake.

Pune-based market research company ValueNotes, which provides strategic and competitive intelligence, said in a report that the bread industry in India, valued at Rs33bn (USD 0.53 bn) in FY 2015, grew at a CAGR of 9 per cent over the last three years. The industry will be worth approximately Rs 53 bn (USD 0.86bn) by FY 2020, growing at a CAGR of 10 per cent”.