Company to invest Rs 75 to Rs 100 crore to scale up operations
As part of its strategic initiative to foray into food processing sector, Anil Group, an Ahmedabad-based food and bio-industrial conglomerate, has acquired Vigo Bio-tech Dairy Pvt Ltd for about Rs 20 to 25 crore.
Anil Hospitality Ventures Ltd (AHVL), a company of Anil Group, has picked up a controlling stake of 90 per cent in Vigo Bio-tech having its operation base near Halol, 40 kms from Vadodara. "Through this acquisition, the company plans to drive growth by leveraging emerging opportunities in food processing sector," said Amol Seth, managing director, Anil Group.
The acquisition will help Anil to harness Vigo's expertise to address the entire value chain of dairy farming, including milk production and milk products. So far the company has been operating in various stages of farm-to-fork value chain and now it has decided to move up the value chain. The company is geared up to enter the food processing sector with wide range of food products.
"Vigo offers multiple synergies with our existing businesses. We have planned an investment of Rs 75 to Rs 100 crore to scale up the operations of the acquired entity in next 12 to 18 months," Seth added. Currently, Vigo markets cow milk in and around Vadodara. Post expansion, Anil Group intends to produce speciality dairy products.
Vigo has already installed a high-tech 80-unit rotary milking parlour procured from dairy master of Ireland and this is Asia's largest and the fourth largest in the world. The dairy player already has 550 Holstein Friesian hybrid cows and Anil Group is looking at increasing the number substantially by the fiscal 2010-11.
Initially, Anil Group will use milk produced from Vigo's farm. However, it may start milk procurement from outside as it scales up its operations. "As part of our strategy to enter into food processing sector, we are open to further acquire players operating in distribution and production of milk products space," he said. Anil Hospitality currently runs a chain of dinning halls and cafe, which it is considering to expand.