India: Vallabhdas Kanji Limited (VKL) Takes Over Beeta Chemicals; Strengthens Global Presence with Vietnam Arm

Source: Vallabhdas Kanji Limited (VKL), 20/12/2006

15 December 2006 - Vallabhdas Kanji Limited (VKL), Asia's largest processor of spices and part of the Rs 500 crore Kanji Morarji Group, has further strengthened its global presence by setting up VKL Vietnam Ltd., a subsidiary in Vietnam. Headquartered in Kochi, VKL currently has three manufacturing locations at Kochi and subsidiaries in the US & Germany.

On the domestic front, VKL, India’s largest exporter of value-added spices, has acquired the business of Beeta Chemicals, Mumbai, for an undisclosed amount. The new entity will help VKL to deliver enhanced, value-added benefits to its customer base. The new entity will operate as a division of VKL. Dr. Ramesh Mantri, the main force behind Beeta Chemicals, will continue to develop products for the new entity.

VKL had in October 2006 concluded a US$6 million private placement with UTI Venture Funds and is likely to make an IPO in next 2-3 years.

According to VKL Chairman Mr. J V Mariwala, “Both these developments come within a short span of time of our private placement initiative with UTI Venture Funds. The moves reinforce VKL’s aggressive growth plans and its commitment to delivering enhanced benefits to all its stakeholders.”

VKL Vietnam Ltd. has already taken a factory site at the ‘Vietnam Singapore Industrial Park’, a joint venture of the governments of Vietnam and Singapore. This park has an international community of investors including Kimberley Clarke, Roche, Siemens, Unilever, among others and also hosts some of the leading Indian companies like Godrej and Ranbaxy. The state-of-the-art plant will process and steam sterilize pepper at Vietnam for export.

According to Mr.Ajay Mariwala, Managing Director, VKL, “VKL’s new pepper plant would make VKL one of the pre-eminent suppliers of value-added black pepper to customers worldwide. It should catapult us into a position of significantly influencing the global pepper supply chain.”

Beeta Chemicals, a partnership firm set up in the mid ‘70s by Dr Ramesh Mantri, an eminent scientist with a Doctorate from UDCT, is a strong player in the flavors & fragrances industry in India. It has a strong customer base comprising several premier companies and brands in India & abroad. Its products span application segments as diverse as snack foods, RTEMs, beverages, confectionery, bakery, personal care, oral hygiene & pharmaceutical. Beeta Chemicals & Dr.Mantri have been honored with several distinctions, notably “National Award for Quality Products” by the Government of India. It is also credited with achievements such as having created Urvashi, the only Indian perfume ever to be ranked among the top 5 leading perfumes in France, while also creating the signature perfume launched by eminent singer Lata Mangeshkar in name, amongst many others.

Commenting on the acquisition of Beeta Chemicals, Mr. Ajay Mariwala, MD, said: “The acquisition enables VKL’s existing Seasonings & Private Label businesses to deliver enhanced, value-added benefits to its strong customer base worldwide, The acquisition brings to VKL’s product portfolio a separately marketable range of products that extend into segments as diverse as industrial application, food service, bakery & retail, as well as makes available an entirely new range in fragrances.”

VKL will also be substantially investing in enhancing manufacturing facilities as well as further strengthening the R&D infrastructure of the Division.

About VKL

Headquartered at Kochi, Kerala, Vallabhdas Kanji Ltd (VKL) is Asia's largest spice processor and India's largest exporter of value-added spices. It is also India’s largest exporter of processed spices. VKL is part of the Rs 500 crore Kanji Morarji Group that includes Kancor Flavours and Extracts Ltd and Auto Hangar (India) Pvt. Ltd, Mumbai.

During the fiscal year 2007, the company expects its turnover to touch Rs 150 crore and double to Rs 300 crore by fiscal year 2008.

The company is led by Mr. Ajay Mariwala, Managing Director, who is a Chemical Engineer from Purdue University, USA and a Management graduate from the Sloan School of Management, Massachusetts Institute of Technology, USA.

Commencing its operation in 1935 as a whole spice trader, VKL has been a pioneer in global spice trade and a Company credited with establishing standards in black pepper that are still the global reference. Today, VKL has grown to be a globally competitive, dominant, professionally managed enterprise, with a clientele that spans 40 destinations in 30 countries and includes several Fortune 500 companies.

Over the last two years, the Company has forayed into two new lines of business – seasonings and private label. Forward integration into these higher value products has provided the company significant impetus to growth and profitability. VKL is currently a key supply-chain and ingredient-solutions partner to leading fast food, snack-food, processed food, ready-to-eat-meal and other food companies in India & abroad.

VKL also packs spices & seasonings in the brands of some of the premier Companies, which are retailed in supermarkets & food-service chains in several countries, including US, UK, Australia, etc. VKL packed products have been on supermarket shelves in leading stores and also consumed at leading restaurants & food service outlets.