The acquisition includes Amrit Banaspati's manufacturing facility at Rajpura in the state of Punjab, rights to its brands and trademarks, its sales and distribution business and the transfer of employees pertaining to its edible oils and fats business to Bunge India. Bunge India would also acquire rights to GAGAN, the vanaspati brand held by Amrit Corp which is currently licensed to Amrit Banaspati.
The transaction, which is subject to approval by shareholders of Amrit Banaspati and Amrit Corp, has been unanimously approved and recommended by the boards of directors of both companies. The transaction is also subject to regulatory approvals and other customary closing conditions.
Christopher White, CEO, Bunge Asia, said, "This acquisition underscores Bunge's long-term commitment to growing our consumer food business in India. It enables us to expand our distribution reach, manufacturing base and brand portfolio to serve a growing customer base."
Adhiraj Sarin, managing director, Bunge India, added, "Amrit, Gagan and Ginni are trusted names associated with preparing tasty food, and we intend to build on their strong brand heritage. These brands, coupled with capable employees and a strong distribution network, open up opportunities for synergistic collaboration with Bunge India, creating incremental value for the combined operations. The addition of this business, along with our commitment to quality, food safety, innovation, risk management and efficiency through our global supply chain, will position Bunge well to be a long-term industry leader."
N. K. Bajaj, chairman and managing director, Amrit Banaspati, said, "The board of directors has approved Bunge's offer and will also recommend an appropriate dividend to shareholders from proceeds of the sale. Bunge is a respected name in both the Indian and global markets. It is known for its high quality products, and I'm very happy that the products and brands of our company, which have gained a reputation for quality and service over the past decades, will continue to serve our valued consumers in the capable hands of Bunge. Subsequent to the transaction, Amrit Banaspati will continue to operate a commodities trading division and will explore venturing into real estate and other promising business opportunities."
From the December 22, 2011, Prepared Foods' Daily News.