ADF Foods earmarks Rs 100-cr for overseas acquisitions

Ethnic Indian foods-maker, ADF Foods, is eyeing a couple of overseas acquisitions in the Rs 50-100-crore range, a top company official said.
       
"We are eyeing the UK, US and Australian markets for an acquisition. We are looking at a company with a strong distribution network and owning an ethnic food brand," ADF Foods' Managing Director, Bimal Thakkar, told PTI here.
       
The deal size would be in the range of Rs 50-100-crore, he said, adding the company hoped to seal a deal by this year-end.
       
The acquisition would be funded by internal accruals.
       
"We are a cash-rich company with no debt--in fact, we are sitting on some Rs 30-crore of cash. We can easily do a Rs 100-crore acquisition without diluting any equity in our company," Thakkar said.
       
While Indian companies were "over-priced", good valuations were available overseas and hence the company was eyeing an overseas acquisition, he said.
       
"If that company has a strong distribution and besides also owns an ethnic food brand (like Chinese or Thai), it will bring in a lot of synergy for us. We can then control distribution and grow quickly in that market," Thakkar said.

ADF Foods, which currently earns 95 per cent of its revenue from the international market, now plans to focus on India and hopes to grow its revenue from the domestic market to around 40 per cent in the next three-years.
       
"We are aiming for a 60:40 revenue mix from our international and domestic businesses in the next three-years," Thakkar said.
       
ADF Foods with a present turnover of Rs 100-crore is eyeing a Rs 500-crore in the next five-years driven by organic and inorganic expansion and fuelled by a strong growth in both its international and domestic businesses.
       
While the company sells ethnic Indian foods overseas, within India, it plans to launch international cuisines such as Chinese, Thai and Italian foods. "Some of it will be imported while some will be manufactured locally," Thakkar said.
       
The company recently launched its Soul range of pickles made in virgin olive oil.
       
Overseas, it has five brands--Camel, Aeroplane, Ashoka (its flagship brand), Khansaama and Truly Indian. The company enjoys a strong penetration in the Middle-East, the UK, US, Canada and Australia.