Hyderabad-headquartered Gemini Edibles and Fats India has acquired a 70 per cent stake in Coimbatore-based Sree Annapoorna Foods to manufacture and distribute masalas, meal mixes, and other products, a top official said.
A joint venture company, GEF Foods India Pvt Ltd, has been formed following the collaboration between the two entities, Gemini Edibles and Fats India Ltd Senior Vice President of Sales and Marketing, Chandra Shekhara Reddy, said.
Describing his company, Reddy said Gemini Edibles and Fats India is a subsidiary of the vegetable oil company Golden Agri-Resources and has been engaged in the production and distribution of edible oils and speciality fats in the country. He said the company retails the ‘Freedom’ brand of oils across India and has a refining capacity of 2,450 metric tonne per day.
“We always wanted to expand into a second business. Sree Annapoorna Foods has a great reputation and carries a legacy of 50 years of consistent quality in spice processing. This joint venture will be mutually beneficial. We can engage in a lot of cross-selling for each other,” he told reporters.
Reddy stated that Gemini Edibles and Fats India reported revenues of Rs 9,500 crore last financial year and expects to grow to Rs 12,000 crore in the current financial year.
With the launch of the newly formed entity, GEF Foods Pvt Ltd is expected to record revenues of Rs 100 crore in its first year of operations, said Sree Annapoorna Foods Managing Partner Vijay Prasad.
Prasad, who will also serve as the CEO of GEF Foods India Pvt Ltd, said he expects the company to generate Rs 1,000 crore in revenue over the next five years.
“The year 2025 will be a major milestone for Sree Annapoorna Foods as we will be completing 50 years of operations, and this partnership with Gemini Edibles and Fats India marks another significant achievement,” he said.
Citing a study, he noted that the branded spices industry in Tamil Nadu is expected to grow from the current Rs 9,129 crore to Rs 17,950 crore by 2032, while in South India, it is projected to expand from Rs 46,832 crore to Rs 96,468 crore by the same year.
“It is only logical to partner with a company like Gemini Edibles and Fats India, which has the bandwidth in distribution, marketing, and financial support,” he said.
In response to a query, Gemini Edibles and Fats India Group Vice President Akshay Chowdhry stated that around Rs 70 crore has already been invested in the joint venture. “We will invest another Rs 50 crore to establish a manufacturing facility under the joint venture moving forward,” he added.
Sree Annapoorna Foods reported revenues of Rs 45 crore last financial year and employs about 200 people in the state, Prasad said.
