Private equity firm India Value Fund Advisors (IVFA) has agreed to invest $40m in India-based ingredients firm Vallabhdas Kanji (VKL Seasoning) to support the next phase of growth of ingredient firm as it makes transition as a value-added player.
The funding will allow VKL to grow its domestic presence as well as expand its business development efforts in the Middle East and Africa.
The deal includes primary infusion and a secondary sale of shares of investors. It would mark an exit for Ascent India Fund which invested $6m in VKL in 2006.
Haresh Chawla and Vikram Nirula, partners at IVFA, have joined VKL's board of directors.
VKL managing director Ajay Mariwala said that the company aims to expand its product offerings over the next few years in related food segments with growth opportunities coming from a combination of organic and inorganic initiatives.
"This funding will help us grow our domestic capacities and expand business development efforts in the Middle East & Africa," Mariwala added.
IVFA managing partner Vishal Nevatia said that VKL is well positioned to benefit from a robust growth in the underlying QSR and processed foods industries.
Avendus Capital and DSK Legal have been appointed as advisers to assess on the transaction.
Established in 1935, VKL Seasoning is a manufacturer of food ingredients and flavouring solutions in India and the Middle East, catering to the quick service restaurants (QSR) and the processed food industries.
