UVF invests $6 mn in Kochi spice processor

UTI Venture Funds (UVF), the private equity arm of the Unit Trust of India, has invested $6 million (Rs 26.90 crore) in Kochi-based spice processor and exporter Vallabhdas Kanji (VKL) through its Ascent India fund.

VKL, one of Asia's largest spice processors, has three manufacturing facilities in Kochi, with an installed processing capacity of 20,000 tonne for spice and 5,000 tonne for blended spice.

It also plans to start subsidiaries in the UK and south-east Asia and will, therefore, utilise the funds raised through preferential allotment for acquisitions and setting up greenfield projects.

"Our capital will help VKL consolidate and expand in international markets. VKL is poised to assume leadership in the agri-food outsourcing space," K E C Raja Kumar, MD and CEO of UVF, said.

Apart from the above, Vallabdhas Kanji is planning to set a processing facility for black pepper in Vietnam. The Vietnam unit is expected to become operational between June and September next year. Black pepper and chillies constitute bulk of the company's spice business.

Besides spice products, Vallabdhas Kanji, the flagship company of the Kanji Moorarji group, supplies ingredients to fast-food and processed food companies. VKL's turnover, currently around Rs 150 crore, is expected to grow to the tune of Rs 300 crore by 2008.