New Delhi: LT Foods Ltd, the Delhi-based brand behind the ‘Dawat’ basmati rice brand, has announced the acquisition of Hungary-based canned vegetable manufacturer, Global Green Europe Kft for €25 million. This acquisition will help the brand expand its portfolio beyond rice and pulses, and explore mature markets in Europe.
According to a press release filed to the bourses, Global Green Europe exports processed canned and jarred foods across 20 European countries, with production facilities based in Hungary. The company is a key player in the production of jarred peas, sour cherries, silver skin onions and gherkins, besides canned sweet corn, spread across 2 manufacturing units spread across 45 acres. Global Green Europe has a workforce of over 170 employees, with a turnover of about €40 million.
Domestic FMCG brands, like LT Foods, have no choice but to expand overseas due to the intense competition in the almost $245 billion market in India, where premium brands compete with value-concious ones for shelf space. With the top 5 players already controlling 75% of the market, mid sized companies have no choice but to scout for overseas acquisitions. The intense competition, coupled with sporadic supply chain disruptions, has even led leading brands like Adani Enterprises to exit the space altogether, while others, like Reliance Retail are actively scouting for acquisitions to expand their base.
For LT Foods, this acquisition will help it expand its existing brands to newer markets in Central and Eastern Europe, while furthering its ambition to become a multi-category FMCG player.
“This acquisition marks an important step forward in our strategy of expanding our product portfolio and global footprint. The acquisition of Global Green Europe Kft. enables us to enter the processed canned food market, leveraging synergies with our existing business in Europe. This acquisition also reinforces our commitment to building a globally diversified food portfolio while maintaining its leadership in rice-based products. We see this as an opportunity to further strengthen our relationship with customers and consumers by offering them a wider range of high-quality, ambient packaged food products, aligned with our purpose of providing ‘Nurturing Goodness’ for people, planet and the community,” the Executive Chairman of LT Foods Limited, Mr. V K Arora said.
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