India Infoline News Service / Mumbai Jan 04, 2007 16:39

Vallabhdas Kanji Limited (VKL), Asia’s largest processor of spices and part of the Rs5bn Kanji Morarji Group is strengthening its domestic and international activities itself to take on the fast emerging boom in the packaged food business, both in the domestic and international markets.

The company is already in the process of tying up with some leading retail chains in India, for packing in their own (private) labels. VKL packed products have been on supermarket shelves in leading stores and also consumed at leading restaurants & food service outlets and also retails its products under private labels in overseas markets like the U.K, Europe, U.S.A, Africa and few south east Asian countries.

In order to strengthen its domestic operations, VKL recently took over Beeta Chemicals to deliver enhanced, value-added benefits to its customer base that includes some of the Fortune 500 companies as also some of the leading beverage makers and fast food chains.

On the international front, VKL has set up its subsidiary in Vietnam, the world leader in pepper production that would be used as base for exports in the international markets. Currently, the company imports pepper from international markets, processes it and re-exports the same.

These and other ongoing activities are backed by the $6 million private equity funds received recently from UTI Venture Funds. The company has begun preparing for an IPO within next 24-30 months to raise further capital to take on the challenges in the fast growing packaged food arena.

Headquartered in Kochi, VKL currently has three manufacturing locations at Kochi and subsidiaries in the US & Germany.

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.”

Beeta Chemicals’ takeover 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. Dr Ramesh Mantri, an eminent scientist with a Doctorate from UDCT, is a strong player in the flavors & fragrances industry in India. Beeta Chemicals 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.

VKL Vietnam Ltd. has 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.”

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.