Roha Dyechem, a manufacturer of synthetic and natural colours, has acquired Saraf Foods Ltd, a freeze-dried agricultural product company, for an undisclosed amount.
The transaction provided exit to promoter Suresh Saraf and his family, and the company’s existing financial investors. Danish investment fund IFU, early stage focussed venture capital fund DSG Consumer Partners and UK-based Pedoria Group are the early backers of the Vadodara-based firm.
Vadodara-based Saraf Foods started production in 1993 with a funding of Rs 1.25 crore from Gujarat Venture Finance Ltd (GVFL). GVFL exited the company in 2005. Though it started with freeze drying, it gradually diversified into air drying and also launched its own brand of vacuum freeze-dried snacks (HALO).
“Over three decades, after making the company very successful, we started feeling that Saraf Foods was not realizing the kind of growth it is capable of. Hence, we decided to sell the company to a larger business house which is capable of taking this business to its higher potential,” said Saraf.
While DSGCP backed the company from its debut fund in 2013, IFU came onboard as new investor in 2018.
“Saraf Foods is a strategic acquisition for us and will help us further expand our product portfolio of dehydrated vegetables and fruits which includes MVD and air-dried technology with manufacturing in New Foods, Italy. With this acquisition, we now have production in India which enables us to expand our customer reach,” said Mahesh Tibrewala, managing director at Roha Dyechem.
Mumbai-headquartered Roha Dyechem claims to be serving some of the major names in the FMCG, pharma, food & beverage, and industrial colours industries. The company has a presence in around 22 countries.
The overall specialty chemicals and colours has seen quite a few deals in recent past. In July, Oterra, a supplier of natural colours, had acquired natural ingredients manufacturer Akay Group for an undisclosed sum. The transaction marked Oterra's 4th acquisition since last year.
In June, Azelis, a specialty chemicals and ingredients-focused firm reached an agreement to acquire a majority stake in the aroma chemical distributor, Ashapura Aromas Pvt. Ltd. The deal is likely to have closed at $150 million.
Singapore-based venture capital firm DSG Consumer Partners primarily focuses on investing in growing consumer businesses in India & Southeast Asia. VCCircle had reported earlier this year that the firm is planning to raise its fourth consumer-focussed fund targeting nearly double the quantum it raised for its last fund over two years ago.
Investment Fund for Developing Countries (IFU) is an independent Danish government-owned fund. The fund offers advisory services and risk capital to Danish companies looking to do business in developing countries and emerging markets.
