The acquisition has been routed through General Mills India which acquires Parampara's range of ready-to-cook gravy mixes, which are sold under the Parampara, Starterz, and Curry Tree brands.
Started as a pickle, pappad and spices outfit, Parampara has the capacity to manufacture 5 million spice mix packs a year.
The company’s products have a regional tilt – they are mainly sold in the state of Maharashtra (where Pune is located) as well as overseas markets such as the US, Canada and Japan.
Family table values
“The acquisition of Parampara Food Products' strong portfolio of brands strengthens our ability to help bring home-cooked meals to the family table and positions General Mills India for continued growth,” said Vijay Sood, vice president and executive director of General Mills India.
“We want to expand on Parampara's potential to bring convenient meal solutions for our consumers across India and around the world,” Sood stated.
The Indian packaged food industry is expected to touch US$30bn by 2015 on the back of emerging categories including ready-to-eat (RTE) foods, according to the Associated Chambers of Commerce and Industry of India (ASSOCHAM).
According to a survey conducted by ASSOCHAM, more than 82% of the workforce prefers packaged food rather eating outside or in roadside eateries in cities like Delhi, Mumbai, Kolkata, Chennai, Bangalore, and Hyderabad.
General Mills already has a presence in India’s food market with the Pillsbury range of atta (flour) and cake mixes, Betty Crocker dessert mixes, Green Giant frozen vegetables, Nature Valley granola bars, and Häagen-Dazs ice-cream.
This deal comes after 2011 saw a flurry of activity with overseas food companies taking controlling interests in India’s food sectors. Last year, Pune-based Rasoi Magic Foods, known for spices, spice mixes and ready-to-eat foods, was acquired by Norway-based Orkla Brands through its Indian company MTR Foods.
Similarly, US-based McCormick acquired 85% in Kohinoor Speciality Foods India, a joint venture with the Kohinoor Foods Ltd, to market and sell the latter’s food products in India, by investing U$115m.