Agro Tech Foods Limited (ATFL) has successfully completed the acquisition of Del Monte Foods Private Limited (DMFPL) in an all-stock transaction worth INR 1,300 crore. This strategic move cements ATFL’s position as a leading player in India’s packaged food and FMCG sector, with the combined entity achieving a revenue of over INR 1,300 crore in FY24.
Strengthening Market Leadership
The acquisition significantly bolsters ATFL’s portfolio, as DMFPL contributed approximately 40% to the combined revenue and 38% to the EBITDA in FY24. With this transaction, Bharti and Del Monte Pacific Limited (DMPL) have become shareholders in ATFL. Bharti now holds a 21% stake, making it the second-largest shareholder, while DMPL owns 14% of ATFL.
To reinforce corporate leadership, ATFL has appointed Harjeet Kohli, Joint MD of Bharti Enterprises, as a director on its board. This strategic appointment is expected to enhance ATFL’s governance and decision-making capabilities.
Exclusive Rights to Del Monte Brand
The acquisition grants ATFL an exclusive and perpetual license for the Del Monte brand in India. This ensures continuity and expansion of Del Monte’s product range, which includes Italian foods, condiments, packaged fruits, and beverages. The deal also brings Del Monte’s state-of-the-art manufacturing and R&D facility in Hosur, Tamil Nadu, under ATFL’s operations, enhancing product innovation, quality control, and market distribution.
Impact on Business and Consumers
The partnership aligns with ATFL’s commitment to providing innovative and high-quality food products across retail and business-to-business segments, including quick-service restaurants and institutional buyers. The move is expected to drive category expansion and deepen ATFL’s market presence in India’s growing FMCG sector.
Leadership Insights
Nitish Bajaj, Group MD of ATFL, expressed enthusiasm over the acquisition, stating, “We are excited to formally welcome Del Monte India into the ATFL family. This strategic partnership strengthens our ability to offer a broader range of high-quality food products to Indian consumers. With Del Monte’s strong brand recognition and our expertise in food innovation and distribution, we are well-positioned to accelerate growth and create significant value for our stakeholders.”
Abhinav Kapoor, CEO and Whole Time Director of DMFPL, highlighted the growth prospects, saying, “The combination of the soon-to-be-rebranded Sundrop Brands and Del Monte Foods marks a strategic milestone, unlocking new avenues of growth for the business. By capitalizing on emerging demand, leveraging our distribution network, and enhancing operational efficiency, we aim to drive significant growth across product categories. This will not only boost sales but also create exciting opportunities for Del Monte employees while delivering greater value to our customers and stakeholders.”
About Agro Tech Foods Limited (ATFL)
Headquartered in Gurgaon, ATFL is a publicly listed company engaged in creating, marketing, and distributing innovative and convenient food solutions. Known for its popular brands like Sundrop edible oils and ACT II popcorn, ATFL continues to expand through strategic acquisitions and category diversification. The company is listed on the National Stock Exchange and the Bombay Stock Exchange.