The major food ingredient maker acquired a part of Amalgam group.
Vallabhdas Kanji (VKL), a major food ingredients and flavouring solutions maker, has bought the Keya brand of herbs, seasonings and spices from Kochi based Amalgam Group.
About a year ago, India Value Fund Advisors (IVFA) had taken a majority stake in VKL with a commitment to invest up to $40 million to fund the company’s next phase of growth. VKL has taken over the non-frozen food segment under the Keya brand.
According to sources, the takeover by VKL happened when the largest spice oleoresin manufacturing and exporting company Synthite Industries was close to clinching the deal after conducting due diligence, but VKL bagged the deal with a better offer.
Keya brand of spices, herbs and seasoning has been catering to the premium segment in metros and big cities mostly. It has not been reportedly performing as well as company's other divisions. Commenting on the same, SP Kamath, VP, Legal Affairs and Company Secretary, Amalgam Group, said, "It was breaking even. We sold when we got a good valuation. The IVFA has partnered with VKL which has operations in Kochi and Mumbai, with the idea of making it the largest food ingredients company in the country.”
VKL supplies seasonings and herbs to a string of snack food companies and restaurant chains including ITC, Parle, Nestle, Brittania, KFC and Dominos amongst other.