Kedaara Capital, TA Associates eye 49% in Cremica

MUMBAI: Private equity majors Kedaara Capital and TA Associates are in the fray to buy up to 49% stake in Cremica, a Punjab-based maker of biscuits and bakery products, in a deal estimated at about Rs 300 crore, people familiar with the matter said.


Cremica, owner of the Mrs Bector's brand, would see existing investor Motilal Oswal Private Equity and one of the promoter shareholders offloading shares following a family settlement. Potential investors may push for a controlling interest in a phased manner, but the matter was subject to discussions and may not come easy, said a source cited earlier in the report.

Investment bank Avendus Capital is running the sale process at Cremica.

TOI first reported on the possibility of a deal on February 6, 2013.

Cremica Group, founded by Rajni Bector as a backyard enterprise 35 years ago, till recently was controlled by three siblings - Anoop, Akshay and Ajay Bector - with equal shareholding. As part of a recent settlement, Anoop Bector will take charge of the biscuits and bakery unit, while Akshay Bector will helm the condiments business.

The biscuits and bakery unit is bigger, but condiments are a faster growing business for the group. Ajay Bector along with Motilal Oswal is expected to divest stake to one of the two shortlisted financial investors.

Kedaraa Capital, co-founded by private equity veterans Manish Kejriwal and Sunish Sharma, recently raised a $540-million maiden fund. The Boston-headquartered TA Associates, managing assets worth over $16 billion globally, has been keen on a bite of the domestic consumption story. Its current Indian portfolio includes Dr Lal Pathlabs, Micromax and Billdesk.

Anoop Bector, Kedaraa Capital and Avendus declined to comment. TA Associates could not be reached for immediate comments, while Ajay Bector said he was unaware of the developments. India's food services sector has slowed down in recent quarters as Asia's third largest economy lost some steam. Still, foreign investors continue to explore opportunities around the broader consumption story, counting on its long-term potential.