Basmati rice distributor Kohinoor foods Ltd (KFL) today said that it has formed a joint venture with US based Food and seasonings maker McCormick and Company, to market and sell its (Kohinoor's) basmati rice and food products in India.
McCormick will hold 85% stake in the joint venture and it will invest a total of $115 million.
The new joint venture will market and sell 'Kohinoor' brand rice and food products in India.
"The company proposes to transfer its undertaking relating to the business of manufacturing, processing, finishing, marketing, trading, distributing, importing, exporting and/or supply of food products" KFL said in a filing to the Bombay Stock Exchange (BSE).
KFL will also transfer all its assets and liabilities, employees, contracts, licenses, agreements, etc, as a going concern or otherwise, it added.
The transfer is being made to a joint venture to be named Kohinoor Speciality Foods India Private Limited, that KFL has agreed to from with McCormick.
The agreement is expected to be completed later this year subject to regulatory and other approvals in India, McCormick said in a statement.
Kohinoor Foods makes and distributes rice as well as cooking pastes, spices, seasonings and frozen foods in India, while McCormick is into manufacturing, marketing and distribution of spices, seasonings, specialty foods and flavorings.
Shares of KFL were ruling at Rs 53.65, up by 0.56%, in the afternoon trade in the BSE.