Friday, September 21, 2012


Maiyas Beverages & Food To Raise PE Investment

Launched after the completion of five-year non-compete clause between Sadananda Maiya and MTR Foods, Maiyas Beverages And Food is all set to raise PE funds of around $20 Mn for expansion, according to market news.
In 2007, when MTR foods was bought by Norwegian Orkla intitiated by JP Morgan and Aquarius for a profitable exit, also came out with a non-compete clause for five years, which prohibited Maiya to enter the packaged food segement. The clause expired in April 2012.
Maiya Food which sells ready-to-eat food under brand name Maiyas is aggressively focusing on the market across South India. Sadananda started business expansion with an aggressive R60 Cr investment in a fully automated factory on 20 acres in Bangalore. A part of that investment was made through a short-term debt from a bank.
According to the business plan, Sadananda would first roll out a range of spices and, subsequently, instant mixes. This would be followed by ready-to-eat foods and frozen foods. Maiya’s Beverages and Foods has already rolled out 80 stock keeping units (SKUs) and is slated to touch the 300-SKU mark in a year.
India’s ready-to-eat foods market is now worth around R800 Cr and is growing at an average 15% year-on-year.
- Umesh Shanmugam

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