JISL buys Parle's mango processing facility

The deal is pegged at Rs 14 crore.

Mumbai-based Jain Irrigation Systems (JISL) has acquired the mango-processing business of Parle Bisleri Pvt Ltd for Rs 14 crore.

Sources said Parle would now restrict itself to the aerated/ packaged water brand, Bisleri, and would handle retailing of the Maaza brand outside India.

Jain Irrigation has acquired two mango-processing facilities at Chittoor in south India "" in the largest mango-growing region in the country.

With the acquisition, JISL has built a total capacity of over 60,000 tonne of mango processing at its plants at Jalgaon in Maharashtra, and Hyderabad and Chittoor in Andhra Pradesh.

"The acquisition makes JISL the largest processor of fruits and vegetables in the country and possibly the biggest mango pulp-processor in the organised sector," Anil Jain, managing director, Jain Irrigation Systems, said.

Jain pointed out that the acquisition in the south would give JISL the advantage of freight and quality of fruits. "The yield is likely to go up, as the company will save transportation costs," he said.

JISL's fruit-processing division supplies processed tropical fruits. The division's turnover for the financial year 2005-06 is estimated at Rs 60 crore, with exports to contribute about Rs 30 crore.

The division supplies to users of fruit pulp to Coke, which sells Maaza in India.

For JISL, the acquisition will also open up the existing customer base for exports to the Middle-East and south-east Asia.

"The acquisition will help the company deepen market penetration in these regions and will result in significant savings, including that in freight and raw material procurement costs. Benefits of the transaction will flow in its books from 2006-07," JISL executives said.

Parle Bisleri's revenue for the current year from this division is estimated to be Rs 35 crore.