McCormick to enter joint venture in India
SPARKS, MD. — McCormick & Co. has agreed to form a joint venture with Kohinoor Foods Ltd. to market and sell basmati rice and food products in India.
The joint venture will be called Kohinoor Specialty Foods India, and it will sell and market the Kohinoor brand of food products in India. McCormick will invest $115 million for the transaction, and the company will have an 85% interest in the new joint venture. The agreement is expected to be completed later in 2011 and includes a modern facility for packaged food products.
“This joint venture is an important step in our strategy to accelerate growth in the Asia/Pacific region,” said Alan Wilson, chairman, president and chief executive officer of McCormick. “Kohinoor Specialty Foods India will take McCormick’s investments in India to more than $150 million, and we have plans to continue investing in this rapidly growing market. We are excited about the excellent opportunity to work with the employees of Kohinoor to achieve further business growth with a highly recognized national brand. The management of Kohinoor has developed a fast-growing, profitable business with vast expertise in their products and an extensive distribution network in the Indian retail market. We look forward to partnering with them to develop and launch new products, penetrate under-served markets and expand in the food service channel in India. This venture with Kohinoor holds all the promise and potential for exciting flavor innovations ahead.”
Overall, McCormick said the venture builds on its investments in India and its strategy to expand sales in emerging markets.
“We are excited about this new joint venture,” said Satnam Arora, joint managing director of Kohinoor Foods. “We are confident it will be a win-win situation for all stakeholders and add immense value to both consumers and the packaged food industry in India. We look forward to the success of this joint venture.”