Ceylon Biscuits drops Bakeman's bid

NEW DELHI: Sri Lankan biscuit major, Ceylon Biscuits, has given up its plans to acquire the Bakeman’s brand name. Instead, the company plans to make a foray into India under its brand Munchee.

Ceylon Biscuits had earlier bid for the Bakeman’s brand when it bought the Indian biscuit company’s plant at Patiala for Rs 13 crore last year. The Bakeman’s brand is currently embroiled in a long-drawn legal battle.

Sources say, since the brand is hypothecated to banks, there are huge complications around it. This has led Ceylon Biscuits to opt out and focus on what it has already acquired.

“The case remains under litigation and we believe it best to let go off the idea and build our own brand,” Ceylon Biscuits chairman Mineka P Wickramasingha told ET in a telecon from Colombo.

Ceylon Biscuits, which had been selling imported biscuits and cookies in south, now wants to formally launch its brand Munchee in India. It will also use the Indian facility to feed the export market.

“There are some variants made in India that are not made in Sri Lanka such as Glucose and Coconut Cookies. We are negotiating for a 500t export order to West Asia and logistics favour exports from India,” said Mr Wickramsingha.

Besides, the company soon plans to expand the basket of products for the Indian market. While Mr Wickramsingha declined to give details, he confirmed that the company was committed to making more investments in cash and equipment to beef up operations in the Patiala plant.

“We have already despatched required equipment and would launch several new products in India by year end,” he added.