Qatar’s Hassad Food buys majority stake in Bush Foods Overseas for Rs544.50 crore
04 Apr 2013
Qatar's Hassad Food Co has acquired a 51 per cent stake in New Delhi-based basmati rice seller Bush Foods Overseas Pvt Ltd, for about $100 million (Rs544.50 crore).
This is the second time an overseas company is buying majority stake in an Indian basmati rice company after US-based McCormick acquired an 85 per cent stake in a joint venture with Kohinoor Foods in 2011, for $115 million. (See: Kohinoor Foods forms JV with McCormick of US)
"Hassad Food has picked up more than 51 per cent stake in our company. They have invested more than $100 million in this transaction," said Bush Foods managing director and CEO, Virkaran Awasty.
''We will use these investments to grow our brands both in the domestic as well as the international markets,'' he added.
Founded in 1992 and with annual turnover of over $235 million, Bush Foods operates through more than 250,000 outlets across the world and its products are available in over 70 countries.
Its facilities are equipped with a $30 million fully-automated rice mill with an annual capacity of 180,000 tonnes.
Its flagship brands include, ''Neesa'' Premium Gold Basmati, ''Indian Star'' Premium Basmati, ''Himalayan Crown'' Premium Basmati and ''Platinum Star'' Premium Basmati.
Some of its clients include, Westmill Foods (UK), Loblaw Group of Companies (Canada), Metro Super Markets (Canada), Sobeys (Canada), BJ's Club (US), Sam's Clubs (US), Wal-Mart (Canada, US and UK), Biglots (US), Riso Gallo (Italy), Union Trade (Italy), Albert Heijn Supermarkets (Holland), Carrefour (UAE, Kuwait, Bahrain), Leclerc (Poland), Jumbo Super Market (Holland), Aljazeera (Bahrain), Jassim Al Wazzan (Kuwait), Al Maya Group (Dubai), AX Foods (Sweden), Migros (Switzerland), Pic n Pay (S Africa), Ali Bin Ali (Qatar), Bharti Wal-Mart, Spencer's, Reliance, ABRL, Metro, Food world and Spar in India.
Doha-based Hassad Food is an investment arm of Qatar's sovereign wealth fund Qatar Investment Authority. Its aim is to invest in agricultural businesses and projects around the world and re-export the produce where needed.
