UTI Venture picks stake in Vallabhdas Kanji Srikala Bhashyam & Rajesh Chandramouli | TNN

Bangalore/Chennai: UTI Venture Funds is close to picking up a stake in the Keralabased Vallabhdas Kanji Ltd (VKL), Asia's largest spice processor and country's largest exporter of value-added spices. The investment is being made through UTI Venture's $150 million Ascent India Fund. The fund was launched last year to invest in companies with a focus on international business and outsourcing.

Besides spices, the group also has interests in flavours and extracts and exports to over 30 countries. 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 and abroad. Its clients include McDonald's, Pizza Hut, KFC and Domino's in India. VKL also provides spices & seasonings for premier brands retailed in supermarkets & food-service chains in countries like the US, UK and Australia.

The investment is expected to fund VKL's expansion plans outside India. UTI Venture sources refused to comment on the deal size, but it is estimated to be a little under $10 million. VKL is a Rs 100 crore company and is part of the diversified Kanji Morargi Group, which has a turnover of Rs 500 crore. At present, it has three manufacturing locations in Kochi and subsidiaries in the US and Germany. As part of its long term strategy, the company is planning to set up subsidiaries in the UK and South East Asia.

Article in Times of India Bangalore Edition Nov 01 2006