TFL close to buying marine products firm

Mumbai-based Temptation Foods (TFL), a leading frozen food exporting company "" which recently acquired a 70 per cent stake in Aptsource Software "" is on the verge of closing one more partnership in the marine products space over the next two months. The company is also in talks with Marico to buy out the SIL and Mealmaker brands, and company sources aver that the SIL deal is likely to close soon. Having made two acquisitions "" Aptsource and Everfresh "" in the last six months, Vinit Kumar, CMD, Temptation Foods, believes that "inorganic growth will help the company to be on the growth path and become a Rs 250 crore company by 2010-11". The current turnover is around Rs 80 crore.

But why did a foods company take a majority stake in an IT firm?

Temptation's Chairman and Managing Director, Vinit Kumar says: "I could have either grown my own captive information technology (IT) department to cater to my integration needs as the company grows inorganically. This would have become a 'cost centre'. Instead, I chose to acquire this company which has professionals who can help the company achieve its goals. We strongly believe in creating long-term value-adding relationships. I am sure that Aptsource and its value added IP will find wide acceptance in the mid-range market in India as well as overseas in the near future."