Argonaut PE Fund Invests in VKL

Posted 05 February 2008 @ 12:40 pm EST

KOCHI, India, Feb. 5 /PRNewswire/ -- US-based Argonaut Private Equity,which manages more than US $3.5 billion capital, has invested into Kochi(India) based Vallabhdas Kanji Limited (VKL).

Argonaut's investment follows an investment by UTI Venture Fund in 2006that allowed VKL to set-up a green field, state-of-the-art pepper processingfacility in Vietnam and the acquisition of Beeta Chemicals, a leading flavorsand fragrances firm in India. Combined, this gave VKL an overseasmanufacturing facility closest to the world's largest pepper growing areas anda larger product offering through the addition of the IP-intensive flavors andfragrances business.

Argonaut funding will allow VKL to expand its global sales and marketingfor private-label business, further strengthen manufacturing capability andleverage synergistic inorganic growth opportunities in India and abroad.

Anil Khatod, Managing Director of Argonaut Private Equity, believes thatVKL's origin-based global delivery model has tremendous value in the foodingredients business worldwide and VKL's model would allow the company tocontinue its global expansion.

Commenting on the Series B investment in VKL, Ajay Mariwala, ManagingDirector, said: "Having the confidence of a PE fund like Argonaut gives VKLthe added thrust to more aggressively pursue its growth plans. Rapid near-terminorganic growth is definitely on the cards."

Adds VKL Chairman J V Mariwala, "VKL is on its planned growth trajectoryto continue to deliver to all its stakeholders."

ABOUT VKL:

VKL is part of the USD 150 million Kanji Moorarji Group, headquartered inIndia.

Established in 1935 and credited with establishing global standards inblack pepper, VKL is a leader in the global spice trade. VKL has a customerbase that includes Fortune 500 companies and spans 40 countries.

Over the last 3 years, the Company has entered three new lines of business-- seasonings, private-label and flavors & fragrances.

VKL is a key supply-chain and ingredient solutions partner to leading fastfood, snack-food, processed food, RTE (ready to eat) and other food segmentcompanies.

VKL also does private-label packing of spices & seasonings for some of thepremier overseas retail and food-service Companies.

In India, VKL operates four manufacturing facilities out of Cochin andMumbai and has 100% owned subsidiaries in the US, Germany and Vietnam, andagents / representative network across the globe.

A leading India based venture fund, UTI - VF, invested in VKL in 2006.

ABOUT ARGONAUT PRIVATE EQUITY:

Argonaut Private Equity is a diversified global private equity fund withmore than $3.5 billion under management. Argonaut exercises wide discretion oninvestment size, stage, sector and geography. Its equity investments span suchdiverse markets as alternative energy, technology, financial services, media,telecommunications, medical devices, aviation, retail and healthcare. Inaddition to an active investment pace in India, Argonaut's portfolio includesinvestments in the United States, China, Israel, Japan, Eastern Europe andAustralia.

For more details on VKL, please visit the Company website atwww.vklspices.com.

To reach VKL's Managing Director, Mr. Ajay Mariwala:Please write to: ajm@vklspices.com or call +91-484-3077777/78/79.

SOURCE Vallabhdas Kanji Limited