Amul Likely To Acquire Kochi-Based Vanilco

Kochi: Amul mulls to puchase Kochi-based Vanilla India Producers Company (Vanilco), which processes and markets natural vanilla. The acquisition will assist the dairy major gain a foothold in the southern markets and secure natural vanilla stocks ahead of a launch of natural vanilla-based ice creams in March. Vanilco said the companies had received in-principle approval for equity participation. There is strong possibility for the equity participation leading to a merger of the two companies. Vanilco, a company formed in 2003 by 2,500 vanilla growers, already has a pact with Amul to supply it 20 tonnes of natural vanilla essence annually, mainly for the Real Vanilla ice cream range. Vanilco produces 24 vanilla-based products, comprising some for the pharmaceutical and brewery industries. Amul, which lacks a production base in Kerala, is keen on foraying the Kerala market and the association with Vanilco will be a part of the strategy.

Amul sources said the company had switched over fully to natural vanilla to benefit consumers and to help sustain the livelihood of 500,000 vanilla growers in Kerala, Karnataka and Tamil Nadu. The company, which had earlier introduced Vanilla Royal, is planning to unveil another range of vanilla ice creams in the domestic market by the second week of March. Amul accounts for about 45 per cent of the domestic ice cream market share.