As part of its expansion strategy, Pune based Mother's Recipe (A part of Desai Brother's Ltd. (DBL) - food division) has announced the acquisition of one of Kolkata's trusted brand ELMAC (Elmac Agro Manufacturing Pvt. Ltd (EAMPL)). This alliance valued at 1.9 times sales turnover will help our aim of capturing a larger market share in the Indian packaged food industry in the East.
Cashing on ELMAC's existing manufacturing and network, will enable Mother's Recipe to strengthen their reach and cater to the eastern region more effectively and efficiently, while expanding their product portfolio.
In the new setup the existing management will continue to look after the manufacturing & operations facilities, while Mother's Recipe will manage the overall marketing, sales and distribution for the brand ELMAC. Over a period of time, Mother's Recipe looks at growing their volumes from Kolkata and the eastern region which currently contributes about 20% of their domestic sales.
DBL will further strengthen the ELMAC brand using its good brand re-call in the region. Desai Brothers will continue supplying products to ELMAC's existing customers under their Private label brands, who will now stand to benefit from enhanced efficiencies of production, timely supply & stringent quality control.
The company understands the potential of supplying quality products for private label and recognizes its business potential, hence will specifically focus on growing this part of the business with this strategic alliance.
(Continued on the next page)