Best Foods Ltd today said it is in talks with private equity (PE) firms to dilute minority stake in the company as it forays into ready-to-eat food range across India.
"We are in talks with few private equity players to dilute minority stake in the company. We want to rope in a partner that will help us expand our business. We are going to aggressively market our ready-to-eat foods range," Best Foods CEO Aayushman Gupta told PTI.
He declined to share further details, including the level of stake dilution.
On the ready-to-eat segment, Gupta said: "We launched the new range on a pilot basis in May. Now we are officially launching it across India. The segment has a huge growth potential considering changing lifestyles and demographics. We are venturing into this segment with 17 products to start with. We may expand the range going forward."
Best Foods' ready-to-eat range includes meals, sauces and paste.
The company is targeting up to Rs 400 crore turnover from the new business in the next three years and to contribute 15 per cent to the company's total turnover in five years time, Gupta said.
"We will have full scale distribution network in the next three years, We expect ready-to-eat vertical to grow significantly and contribute at least 15% to our total turnover in five years," he said.
The company, which reported turnover of Rs 2,000 crore in the last fiscal, is targeting 30 per cent growth this year. Its main business verticals include basmati rice and health and wellness foods.
