India’s consumption growth story keeps scoring as more private equity (PE) players have shown interest in mid-sized fast-moving consumer goods companies. In the latest development, Manpasand Beverages, the Vadodara-based juice manufacturing and marketing firm, has received interest from PE funds to acquire a minority stake in it. According to sources, US-based PE company Warburg Pincus and Everstone Capital are in discussion with the management of Manpasand to acquire a 10-15 per cent stake. The deal size would be in the range of Rs 100-150 crore.
Another PE firm, SAIF Partners, already owns a minority stake in Manpasand with an investment worth $10 million (Rs 60 crore).
Deloitte and IDFC Capital are advising Manpasand to find a suitable buyer, said sources. Manpasand, with a turnover of Rs 300 crore, is looking for a valuation of Rs 1,000 crore for the business. Manpasand, best known for its fruit juice brands like Mango Sip, Apple Sip, Guava Sip and Litchi Sip in the beverages segment, has a strong presence in tier-II cities in India. More than 90 per cent of the revenue comes from Mango Sip. At present, the packaged juices market is valued at Rs 1,100 crore and is projected to grow at a compound annual growth rate of 15 per cent over the next three years, according to Technopark Advisors.
Mails sent to Niten Malhan, managing director, Warburg Pincus India, and a spokesperson of Manpasand Beverages, did not elicit any response till press time. Sameer Sain, managing partner at Everstone Capital, did not respond to queries. The additional funding will be used for capacity expansion, product launches such as aerated drinks and expansion into new markets, it is learnt.
Dabur is the market leader in the Indian packaged juices market with its brands Real and Real Activ, which account for 55 per cent of the total packaged juices market, and is followed by PepsiCo with a 30 per cent share. Other players include Parle, Fresh Gold and Godrej.
