Private equity group India Agri Business Fund will invest $10 million (about Rs 48 crore) in Gautam Thapar-promoted Avantha Group's food division Global Green Company Ltd.
A shareholders agreement was signed between the Avantha Group and Rabo Equity Advisors, India Agri Business Fund and Global Green said in a joint statement. Rabo Equity Advisors is the investment adviser of IABF.
"We have successfully developed into a multinational food company through acquisitions. As we have aspirations of building our brands and develop a more robust India business, Rabo Equity's knowledge pool will work to our advantage in the next phase of growth," Global Green Managing Director and CEO Vineet Chhabra said.
The company, however, did not provide details regarding the likely utilisation of the investment or its timeframe. On being contacted, an Avantha official said the money would be utilised on its expansion plans.
Global Green, with a sales turnover of $150 million, is a supplier of processed fruits and vegetables and has processing facilities in India, Hungary and Belgium.
The $120 million IABF is sponsored by The Netherlands-based Rabobank and was formed for promotion of food and agribusiness companies in the Indian market.