Seeking Acquisition: Indian Spices Manufacturing & Export Company

Posted By : Consultant / Investment Banker

• Company : (Verified)
• Email : (Verified)
• Mobile : (Verified)

Investment Size

$ 20m - 200m Connect Now

Connect

Message

Close Send Message

Industry :   Food/FMCG
Country :   India
Company Type :   Public Listed Company

Overview

A leading listed FMCG player in India, is actively seeking to acquire an established and reputable Indian spices manufacturing and export-oriented company. This strategic acquisition aims to bolster our product portfolio, expand our presence in the domestic and international spices market, and leverage synergies in supply chain and distribution.

Acquisition Size: USD $20 Million - $200 Million

Key Acquisition Criteria:

We are looking for a company that aligns with our strategic objectives and demonstrates strong potential for growth and integration. Ideal candidates will possess the following attributes:

1. Business & Operational Profile: 

 Core Business: Primary focus on manufacturing and exporting a diverse range of high-quality spices (whole spices, ground spices, blended spices, spice extracts, etc.). * 

Revenue & Profitability: Consistent revenue generation and a strong track record of profitability (EBITDA positive) over the last 3-5 years. 

 Export Focus: Significant revenue contribution from international markets with established export channels and customer base. 

 Manufacturing Capabilities: Modern and well-maintained manufacturing facilities with adequate capacity to support current operations and future growth. Adherence to international quality standards (e.g., HACCP, ISO, FSSC, BRC, FDA registration for relevant markets). 

 Supply Chain: Robust and traceable raw material sourcing network within India. 

 Product Portfolio: Diverse and innovative product range, with potential for new product development. 

 Brand Equity (if applicable): Established brand recognition in domestic and/or international markets is a plus.

2. Financial Health & Performance: 

 Turnover: Within the range to support an acquisition valuation of $20M - $200M. 

Debt Profile: Manageable debt levels with a healthy debt-to-equity ratio. 

Cash Flow: Strong positive operating cash flows. 

Historical Financials: Audited financial statements for the past 3-5 fiscal years.

3. Legal & Regulatory Compliance: 

Clear Title & Ownership: No significant encumbrances or disputes related to assets, intellectual property, or shareholding. 

Regulatory Adherence: Full compliance with all applicable Indian food safety regulations (FSSAI), environmental laws, labor laws, and export regulations. 

Licenses & Permits: All necessary licenses, permits, and certifications for manufacturing, processing, and export are current and valid. 

Litigation & Contingencies: Absence of significant ongoing litigation or undisclosed contingent liabilities.

4. Management & Human Capital: 

Leadership Team: Strong, experienced, and stable management team. 

Employee Relations: Positive employee relations with no history of significant labor disputes. 

Talent Retention: Willingness of key management and technical personnel to transition post-acquisition.

5. Market Position & Growth Potential: 

Competitive Advantage: Demonstrated competitive advantage (e.g., niche product, strong market share in specific segments/geographies, unique sourcing, strong customer relationships). 

Market Share: Healthy market share in key segments or export destinations. 

Growth Opportunities: Clear avenues for future growth, including untapped markets, new product lines, or capacity expansion.

Submission Requirements (Initial Expression of Interest):

Interested parties or their authorized advisors are requested to submit a concise Expression of Interest (EOI) that includes:

1. Company Overview: Brief profile of the company, including founding year, key products, domestic/export focus, and unique selling propositions.

2. Financial Highlights: Summary of key financial figures (Revenue, EBITDA, Net Profit) for the last 3 fiscal years.

3. Manufacturing Facilities: Brief description of manufacturing capabilities and key certifications.

4. Export Markets: Overview of primary export destinations and key customers.

5. Ownership Structure: Details of current shareholding.

6. Reason for Sale (Optional): A brief explanation for the willingness to explore an acquisition.

7. Contact Person: Name, designation, and contact details of the primary point of contact.

Process:

Upon review of initial submissions, shortlisted companies will be contacted for further discussions, which will involve:

• Non-Disclosure Agreement (NDA) execution.

• Detailed information sharing and management presentations.

• Comprehensive financial, legal, operational, and commercial due diligence.

• Negotiation and finalization of terms.

Confidentiality: All submissions will be treated with the strictest confidentiality.