Norvegian Orkala ASA acquires MTR Foods

Bangalore, Feb 13 (UNI) Orkala ASA, a Norway based branded foods company has acquired city-based MTR Foods, catalysts in producing and marketing ready mixes like South Indian delicacies including idly and dosa mixes in the country in an all cash deal of 100 million dollars (RS 443 crore).

With this acquisition the Norwegian foods major thus makes its maiden entry into the highly promising Indian ready to eat food market. MTR Foods which had made spectacular progress had posted a turnover of Rs 135 crore during the last fiscal.

Company sources said that the entire stakes of the company held by different entities like its original promoter Mr Sadananda Maiya (40 per cent), his relatives and friends (26 per cent), private equity funds like J P Morgan (15 per cent) and Aquarius (10 per cent) was bought outright by Orkala group in a deal that was signed in Singapore last Friday.

The parent entity of MTR Foods, which runs an 80-year old ethnic restaurant in Bangalore called Mavalli Tiffen Room that had earned a niche for itself with its fine South Indian delicacies, manufacturers a wide range of processed vegetarian food products such as ready meals, ready mixes and spices.

The deal would be formalised in the next 60 days subject to regulatory approvals, sources said.

The restaurant came to prominence during the emergency period in the late 1970s when it was forced to be closed. Then the government regulations had prescribed price for every food dish served in the restaurants in the state. Saying that it was not possible to offer its delicacies, which were prepared with best available ingredients, at the prescribed prices the restaurant owners closed shop. This had led to their diversification into ready mixes market.

During the past one year there were moves to bring in some strategic investors into the company and UK based invest banker N M Rothschild had been appointed for the purpose. However, for reasons that was not clear, the promoters had decided to sell off their entire stakes.

The company exports its products to many countries in the US, Europe, South East Asian countries like Thailand, Singapore, Hong Kong and Japan. It has a fully automated sophisticated plant at Bommasandra industrial estate near the city.

UNI