Dalmia Continental, which sell olive oil under Leonardo brand, today said it has sold 27% stake in the company to Italian firm Nicola Pantaleo.
The company did not disclose the size of the deal.
Dalmia Continental Pvt Ltd (DCPL) announced the "conclusion of a joint venture agreement with the Italian company Nicola Pantaleo, S.P.A (Pantaleo).
"Pantaleo consequently holds 27 equity in DCPL," the company said in a statement.
When contacted, Dalmia Continental Chairman V N Dalmia said: "Its an strategic alliance. They have been supplying olive oil to us from 2003. We have partnered with Pantaleo for stability of supply and guarantee of best prices."
That apart, he said the company needed funds for growth. It plans to invest Rs 60 crore on marketing during next four years.
DCPL had posted a turnover of Rs 40 crore in 2011-12 and is targeting to achieve Rs 100 crore turnover this fiscal.
Out of total turnover, 90 is from olive oil and the rest from other products such as canola oil, olive fruit, pasta and pickle made in olive oil.
"The joint venture consummated a supply relationship that had been in existence since 2003 when DCPL launched its olive oil brand and is the first-ever joint venture in the olive oil sector in India as also the first Indo-Italian joint venture in olive oil in India," Dalmia said.
The advisors to the deal were Prosight Partners, an investment advisory firm based in the national capital.
Pantaleo is a leading Italian producer of olive oil and is a leading exporter to markets such as USA, Japan, Brazil, South Korea, Russia, Malaysia, and the EU.
Pantaleo is amongst the top five olive oil exporters and top 10 olive oil producers in Italy. Pantaleo is located near Bari in the Puglia region of Italy, which produces 80 of Italy's total olive oil production.
Italy is the number two producer but the biggest exporter of olive oil worldwide.