A fund managed by Morgan Stanley Private Equity Asia has invested INR 152 Cr in Southern Health Foods, makers of "Manna Foods" brand of natural health food products.
Manna Foods' flagship product, Manna Health Mix is a ready to cook improvisation of 'sathumaavu', a traditional homemade multi-grain mixture of cereals, millets and pulses that is cooked in hot milk. Apart from its flagship product, Manna Foods has a strong suite of health food products including ready to cook millet based infant food, millet grains, soya nuggets, dried fruits, purees, pastes etc. Manna is a well-known household brand in South India, trusted by a huge number of households.
"Led by Manna Health Mix, Manna Foods has created a unique health food platform with an array of natural, preservative-free and ethnic food products range. At a time when people are quitting synthetic preparations and switching over to organic and traditional food, Manna Foods is excited about the partnership with Morgan Stanley to write a true success story in Health Foods space in India", said I.S.A.K Nazar, Company promoter.
Arjun Saigal, Co-Head of Morgan Stanley Private Equity Asia in India, said, "We are excited to back a fast growing brand such as Manna which has consistently delivered on its customer promise of natural, healthy and high quality products. At a time when India's eating habits and lifestyles are creating health challenges, we believe that Manna's natural foods are well positioned to offer appealing choices to consumers. Additionally, foods based on home-grown grains such as millets are regaining popularity, offering 'superfood'-type nutritional content at an affordable cost. We look forward to driving Manna's next phase of growth."
The proceeds will be used to fund Company's expansion in South India as well as provide part exit to existing investors. The Company had earlier raised INR 30 Cr from early growth investors led by Fulcrum in 2015.
"Having partnered with Manna in 2015, Fulcrum has been very happy working with the Manna team under the able leadership of Mr. Nazar. We have always felt that Manna has a strong brand and the same has reflected in the strong sales growth posted by the Company over the past 2 years. Joining hands with Morgan Stanley will further help strengthen Company's positioning in the FMCG space", said Ethan Khatri, Partner at Fulcrum.
MAPE Advisory Group acted as the sole financial advisor for the transaction.
About Southern Health Foods
Southern Health Foods is the maker of "Manna Foods" brand of natural health food products. Founded in 2000 and headquartered in Chennai, Manna manufactures and sells ethnic millet based breakfast cereals, instant drink mixes, infant foods, dried fruits and other everyday food products that are 100% natural, have high nutritional value and are gluten free/diabetic friendly. Manna's health foods are based on traditional household recipes and are made from natural nutrient rich ingredients that boost mental and physical development, increase immunity and improve digestion. Today, Manna has a marketing network of 40+ super-stockists and over 500 distributors that cater to 67,250+ retail outlets across 350 towns in India.
About Morgan Stanley Private Equity Asia
Morgan Stanley Private Equity Asia is one of the leading private equity investors in Asia-Pacific, having invested in the region for over 20 years. Morgan Stanley Private Equity Asia invests primarily in highly structured minority investments and control buyouts in growth-oriented companies. The experienced investment team is led by senior professionals with extensive industry relationships, in-depth market knowledge and the ability to apply international investment principles within each local context. Morgan Stanley Private Equity Asia has offices in Hong Kong, Beijing, Shanghai, Seoul, Tokyo, Mumbai and New York, and leverages the brand and unparalleled global network of Morgan Stanley.
Fulcrum is a private equity investor specializing in Indian Pharmaceuticals and Healthcare opportunities. The team comprises of a seasoned investment & operational professionals with hands on domain expertise. Founded in 2000, by the promoters of erstwhile pharmaceutical company - American Remedies, Fulcrum has built a strong track record for adding operational value to portfolio companies and generating superior returns.
Contact Details: Ms. Jayashree
Southern Health Foods Private Limited
129, Z BLOCK (PLOT # 1160), 6th AVENUE, ANNA NAGAR CHENNAI - 40
P: 044- 2628 3991 / 2628 6620; Mobile: 9840283164