MUMBAI, INDIA — Bunge India has entered an agreement to acquire the edible oils and fats business of Amrit Banaspati.
The acquisition includes a manufacturing facility in the state of Punjab, rights to brands and trademarks, the sales and distribution business and the transfer of employees. It also includes rights to Gagan, a brand held by Amrit Corp. and licensed to Amrit Banaspati.
“Amrit, Gagan and Ginni are trusted names associated with preparing tasty food, and we intend to build on their strong brand heritage,” said Adhiraj Sarin, managing director of Bunge India. “These brands, coupled with capable employees and a strong distribution network, open up opportunities for synergistic collaboration with Bunge India, creating incremental value for the combined operations. The addition of this business, along with our commitment to quality, food safety, innovation, risk management and efficiency through our global supply chain, will position Bunge well to be a long-term industry leader.”
The transaction is subject to shareholder and regulatory approval.
“The board of directors has approved Bunge’s offer and will also recommend an appropriate dividend to shareholders from proceeds of the sale,” said N.K. Bajaj, chairman and managing director of Amrit Banaspati. “Bunge is a respected name in both the Indian and global markets. It is known for its high-quality products, and I'm very happy that the products and brands of our company, which have gained a reputation for quality and service over the past decades, will continue to serve our valued consumers in the capable hands of Bunge. Subsequent to the transaction, Amrit Banaspati will continue to operate a commodities trading division and will explore venturing into real estate and other promising business opportunities.”