Temptation To Buy HUL''s Marine Biz

It''s a deal that could be tempting enough for FMCG giant Hindustan Unilever. Temptation Foods, a little known frozen foods exporter is all set to buy out HUL''s marine division in a deal that has been in the cold storage for months. Temptation is likely to pay Rs 150-160 crore for the marine business. The deal is likely to be struck by the month-end. Temptation has a facility near Pune with an annual capacity of 10,000 tonne.

HUL''s marine business with five plants exports products crabsticks, shrimps and fish fillets. That''s not all, Temptation is also in the race to acquire Marico brand SIL Jam and that''s why it is now raising big money to fund its ambitious acquisition plans. Temptation is raising $200 million through sale of shares/convertible warrants to QIPs. The company will seek shareholders approval for the funds mop up plan at its EGM on September 17.Temptation, which was so far focused on exports is now planning to get into the Indian retail market in a big way. It knows that it makes far greater sense to acquire established brands rather than build brand new brands for the Indian retail market.

Source : www.indian-commodity.com