The major foods and FMCG Company named the CavinKare Pvt Ltd has recently announced that it has acquired a Tamil Nadu-based local fruit drink brand, named Maa Fruits Pvt Ltd, for entering the fruit beverage market in India. The industry sources have informed that the CavinKare is being promoted by Mr. C. K. Ranganathan and it has acquired the brand for an amount of 27.6 crore.
While talking about the companys principal objectives behind acquiring the Maa fruit drink brand, the Chairman and Managing Director of CavinKare, Mr. C. K. Ranganathan said, "Apart from expanding the portfolio and capacity, we want to take the brand to other geographies in phases in the following months". According to the sources, Maa is currently having four flavours like mango, pineapple, apple and guava and it is operating in the states like Tamil Nadu, Kerala, Karnataka and Andhra Pradesh. The company also owns a 1.2 crore-liter facility at the Dharmapuri district.
Mr. Ranganathan was also elaborating their plans with the acquisition and said that CavinKare is currently working out a strategy to expand the brand presence and it is also willing to invest in the new facilities, wherever required. The industry sources said that the total market capitalization of the CavinKare is Rs. 500 crore and it has presence in the personal and home care segment and food segment with a range of products. The company has forayed into a new category of foods, with this acquisition and it is intending to focus on increasing the brand visibility in the States wherever Maa is currently present, in the initial period. According to Mr. Ranganathan, "We propose to spend at least 17 per cent of the turnover (of Maa) on advertising and marketing during the first few years".
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| Posted : 2/29/2008 |
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