Qatar-based Hassad Food Co, on Wednesday said that it has picked up a 51% stake for about $100 million (Rs 544.45 crore)in New Delhi-based basmati rice seller Bush Foods Overseas Pvt. Ltd.
Hassad Food, which is an investment fund owned by the Qatar Investment Authority, is the second overseas firm to buy a majority stake in Indian rice seller. Earlier in 2011, US-based McCormick has bought 85% stake in Kohinoor Foods.
“We will use these investments to grow our brands both in the domestic as well as the international markets,” Virkaran Awasty, chairman and managing director of Bush Foods, said in a statement.
Bush Foods, which produces and exports packaged basmati rice under the Neesa, Himalayan Crown and Indian Star brands to more than 70 countries, had revenue of $235 million in FY 2012.
Hassad Food’s investment in Bush Foods Overseas will make an exit route for its private equity backer—Standard Chartered Private Equity (SCPE), the PE arm of Standard Chartered Bank.
SCPE had invested about Rs 110 crore in Bush Foods in 2011.
However, Hassad Food is actively looking at making more investments in India, said Nasser Mohamed Al Hajri, its chairman and managing director. “India is a huge market. It’s a space where Hassad can make good investments. In fact, we are looking at some opportunities in India,” he said, without giving any details.
QInvest and Ambit worked as the financial advisors to Hassad Food and KPMG Corporate Finance, India advised Bush Foods.
