Financial Daily from THE HINDU group of publications
Tuesday, Feb 21, 2006
Financial Daily from THE HINDU group of publications Tuesday, Feb 21, 2006 |
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Corporate
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Mergers & Acquisitions Jain Irrigation buys Parle's mango processing business for Rs 14 cr Our Bureau
Mumbai , Feb. 20 JAIN Irrigation Systems Ltd (JISL) has announced that it has acquired the mango processing business from Parle Bisleri Pvt Ltd at an aggregate consideration of Rs 14 crore as an on-going business. Through this acquisition, the company has acquired two mango-processing facilities at Chittoor in South India. These facilities are situated in the midst of a large mango-growing region in the country. With this, the company has built capacity of about 58,000-60,000 tonnes of mango processing at its Jalgaon, Hyderabad and Chittoor plants. "The new business also comes with existing customer base for exports to West Asia and South-East Asia," JISL said in a news release. Parle Bisleri's revenue for the current year from this division is likely to be Rs 35 crore. "The acquisition will help the company increase market penetration in these regions and result in significant savings including freight and raw material procurement costs," it said. The benefits of the transaction will flow in the company books from FY 2006-07. "The acquisition makes JISL the largest processor of fruits and vegetables in the country and possibly the biggest mango pulp processor in the organised sector," the release said quoting Mr Anil Jain, Managing Director, JISL. The company's fruit processing division is a supplier of processed tropical fruits. The turnover for the division is estimated at Rs 60 crore with exports contributing estimated Rs 30 crore in FY 2005-06. Domestically, the division supplies to the users of fruit pulp such as Coke (Maaza). "India is the second largest producer of fruits in the world. However, only about 4 per cent of the fruits produced are getting processed, as against 50 per cent in Israel, 70 per cent in Brazil and the US and 83 per cent in Malaysia.
More Stories on : Mergers & Acquisitions | Horticulture/Fruits & Vegetables
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