Kerala, Kochi-based Innovative Foods Ltd (IFL), a unit of India Equity Partners (IEP), aims to raise up to Rs 60 crore (approximately US $1.029 billion) to finance major expansion, technology upgrades and brand building. It currently operates four factories with combined capacity of 10,000 metric tons of IQF and block-frozen products.
The frozen food company produces a wide variety of items ranging from shrimp and sausages to french fried potatoes, vegetable burgers, paranthas and samosas. Its Sumeru And Sumeru Quick Snack brands reportedly ranks No. 3 in India’s frozen food market, behind McCain Foods and Godrej Tyson Foods’ Yummiez.
“The business plan is with IEP and it is being considered whether to bring in additional equity or to raise the money through another investor through a share sale,” said Kannan Sitaram, who is IFL’s ceo and as well as an operating partner at IEP.
In addition to serving the domestic quick service restaurant sector and retail market, the company exports value-added products. Its Sumeru label is especially well known in grocery stores that cater to South Asian ethnic communities in the North America, Europe, the Middle East, Japan and beyond.
The Indian domestic market for frozen foods, which has expanded significantly in recent years, is presently valued at over R19 Bn. It is poised to increase at a compound annual growth rate of 20.5 % over the next five years, according to one report.
