CavinKare to expand fruit-drink portfolio

CHENNAI: FMCG major CavinKare, which has forayed into the high-growth beverages market with the first acquisition of Salem-based regional player, Maa Fruits India, plans to expand the portfolio of fruit drinks, double capacity by setting up another plant and take the brand beyond south. CavinKare has acquired 100% equity of Maa and it has become its fully-owned subsidiary.

The enterprise value is pegged at Rs 30 crore (including debts) and all 50 shareholders of Maa were paid a sale con-sideration of Rs 27.6 crore upon execution of share purchase agree-ment and the share transfer deeds.

Spark capital was an advisor to the deal. CavinKare has funded the deal with internal accruals. Maa's core promoter and MD N E Kumar will continue as director on the board.

C K Ranganathan, chairman and MD, CavinKare, told media persons on Wednesday, "It is a good buy for foraying into the beverages segment, which we will add to our food processing portfolio.

We will upgrade quality, double capacity, aggressively promote Maa brand through ad-vertisements and take it beyond south." Maa has fruit juice ranges like mango, pineapple, pink guava.

CavinKare will now add the popular orange range besides extending the line with more products. Maa brand is ranked fourth in the south with a market share of 5%.