Global private equity firm Advent International has acquired a “significant" minority stake in Iscon Balaji Foods Ltd for $150 million (Rs 1,445 crore), participating in the processed food maker and exporter's Series A funding round.
The investment comes four months after 360 One Asset, a wholly owned subsidiary of 360 One WAM Ltd, invested about $70 million (Rs 635 crore) in the processor and exporter of potato-based products.
Advent’s investment is part of Iscon Balaji’s $215 million Series A round, which includes the recent investment made by 360 One.
Avendus Capital acted as the exclusive financial advisor to Iscon Balaji Foods on the transaction.
Advent’s investment will accelerate the firm’s next phase of growth across international and domestic markets, and strengthen the company’s operating platform and product capabilities, the statement added.
As of now, Iscon Balaji is increasing its processing capacity “significantly" over the next six months with a new manufacturing facility in Gujarat.
“Advent is the right partner for what comes next, bringing not just capital, but a strategic sounding board on the big decisions ahead, valuable relationships and deep operational expertise,” said Neel Kotak, Iscon Balaji's chief executive officer.
“Iscon Balaji Foods stands apart for the rigour of its execution, the institutional maturity of its platform, and a track record of consistent, profitable growth across market cycles,” said Shweta Jalan, managing partner at Advent.
Iscon Balaji manufactures frozen potato products such as French fries, hash browns, coated fries, and other speciality products. It caters to quick-service restaurants and food-service distributors across India, South and Far East Asia, the Middle East, and Australia.
Iscon Balaji posted a consolidated revenue from operations of Rs 1,185 crore in FY24, up from Rs 668 crore the year before. Its net profit rose to Rs 263.3 crore from Rs 28.5 crore over the same period, as per VCCEdge.
The firm is looking to add capacity as well as product offerings led by strong overseas demand; Iscon Balaji gets a chunk of its revenues from exports.
It has around 5 manufacturing plants in Madhya Pradesh, Punjab, and the remaining in Gujarat. According to recent company documents, it has commissioned Asia’s largest french fries plant with 150,000 MT capacity in Gujarat.
Over the next 2-3 years, the firm is likely to add a few more manufacturing facilities, including the plant being built in Gujarat.
