Intergrow secures PE funding
By Retail4Growth Team | November 04, 2019
The company will use the funds for the expansion of new products under Sprig
Intergrow Foods and Beverages Pvt. Ltd., a subsidiary of leading value-added spices company Synthite, has rolled out a slew of green tea variants under Sprig brand for mass consumption in the Indian market.
The Kerala-based company that owns Rs 150 crore Kitchen Treasures brand curry masala and spice blends has secured Rs 80 crore funding from Bahrain-based PE firm Investcorp for its new ventures.
“We will use the funds for the expansion of new products under Sprig and for creating additional manufacturing facilities for Kitchen Treasure products in the next three years,’’ said Ashok Mani, MD - Intergrow.
The Sprig brand comprises 50 premium products of spices, seasonings and green tea. The 25 new green tea products that the company launched are different from the existing varieties in the market as they are in the form of powder, instead of sachet, easily soluble in water.
The company will leverage Synthite’s strength in spice extraction for the new products. ``Our new products include green tea with extracts of tulsi, moringa, ginger, rose, jasmine and lavender,’’ Mani said adding that green tea is Rs 1200 crore market in the country, growing at 20 to 25% annually. To start with Intergrow will launch the green tea products in 3000 to 5000 retail supermarkets across the country.
As for Kitchen Treasures, two new factories will be set up in Kolenchery near Kochi where it already has two manufacturing facilities. `` We are aiming at a turnover of Rs 350 crore in the next four years. In addition to UAE, Bahrain, Oman and Qatar, we will introduce the brand in Saudi Arabia and Kuwait.’’ The company will also strengthen its presence in the Kerala, which brings the major share of the turnover now.
Intergrow hopes to capitalise on the growth of green tea products to expand Kitchen Treasures curry masala to other states with a focus on region-specific blends.
Investcorp manages over US $28 billion globally and at its core is a mid-market investment specialist. Girish Nadkarni, Partner and Co-Head of private equity - Investcorp India, said: “Intergrow is a unique food technology platform with unmatched research and development capabilities. We are impressed with the team’s ability to develop new innovative products for the Indian market and provide quality products to consumers.”