Pune-based packaged foods brand Mother's Recipe has acquired Kolkata-based ELMAC (Elmac Agro Manufacturing) for Rs 25 crore as part of its expansion strategy.
This alliance, valued at 1.9 times the sales turnover which was Rs 200 crore in FY15, will help Mother's Recipe capture a larger market share in the domestic packaged food industry in the East, said Sanjay Desai, Executive Director of Desai Brothers, which owns Mother's Recipe.
The company is eyeing a growth of 30 per cent in the current fiscal and in the next three years it is targeting a sales turnover of over Rs 70 crore under ELMAC brand from the region," he added.
Over a period of time, Mother s Recipe is looking at growing their volumes from Kolkata and the eastern region, which currently contributes about 20 per cent of their domestic sales, Desai said.
Cashing in on ELMAC's existing manufacturing and network will enable Mother's Recipe to strengthen their reach and cater to the eastern region more effectively and efficiently, while expanding their product portfolio.
In the new set up, the existing management will continue to look after the manufacturing and operations facilities, while Mother s Recipe will manage the overall marketing, sales and distribution for the brand ELMAC.
"ELMAC, which has a strong brand equity in the eastern region, will help us strengthen our existing product portfolio and enable us in expanding our product categories," Desai added.
"Plans of new product extensions under the Mother's Recipe brand name which is already in process is expected to give us an additional growth of at least 25 per cent in eastern region," he said.
The current product portfolio in India consists of pickles, condiments pastes, blended spices, ethnic chutneys, papad, ready to cook spice mixes and instant mixes.
The Mother s Recipe brand also has a robust distribution network being covered by 700 distributors across the country.