To set up 50:50 joint venture for plant. | |
| AV Thomas, a Rs 800-crore south India-based diversified group, through its arm AVT Natural Products has partnered Swedish firm Gavia to sell the 'Santa Maria' product range of Mexican food in the Indian market. |
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| As per the agreement, AVT Natural Products would import 'TexMex' (Mexican) food from Sweden and then distribute it in India. Both companies plan to bring in the complete concept of Mexican cuisine to India in a ready-to-cook form and made available initially in Bangalore, Mumbai and in eight other cities in phases. |
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| The product range comprises tortillas and tacos, chips, dips and wet sauces, and seasoning mixes. These products would be sold through the premium department stores and retail chains. |
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| For promotion of Mexican food products, both companies are planning to carry out below the line (BTL) activities in Bangalore and Mumbai. The activities would be confined to in-shop promotion, canter promotion, club promotion, mall activity and paper insertions. |
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| According to MSA Kumar, managing director, AVT Natural Products, after one year of importing and selling the 'Santa Maria' products in India, we will explore a 50:50 joint venture with Gavia to have exclusive rights to manufacture and market the Santa Maria products in India. |
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| "This joint venture will invest in the plant and machinery required for the manufacture of the product range. Depending on the market feedback, the initial investment may vary from Rs 20 crore to Rs 25 crore per manufacturing unit. The company expects a turnover of Rs 100 crore to Rs 125 crore in the third year of its operations," he added. |
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| "Santa Maria and AV Thomas Group have been in the business of spices for over a decade. With this joint venture, we hope to bring to India the complete range of Santa Maria products. We believe that the Indian market will respond favourably to our products and we would be able to set up a manufacturing base here soon," said Ludwig Mattson, managing director, Gavia India AB. |
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