Consumer product companies such as Hindustan Unilever (HUL) and Tata Consumer Products are looking to acquire Gujarat-based tea major Girnar Food & Beverages, Business Standard reported.
While the discussions are at an initial stage, according to the report, the deal could be valued at Rs 1,000-1,500 crore. The acquisition would strengthen the buyer’s hold in the western Indian market, a source close to the development told the daily.
The newspaper stated that both companies refused to comment on market speculation.
“As a matter of company policy we do not comment or respond to speculation,” Viduit Shah, executive director at Girnar Food & Beverages, told Business Standard. “Investment bankers approach us periodically to evaluate shareholder value creation avenues, including private equity fund raises, but there are no talks ongoing with any investors.”
The report stated that Dabur was also interested in the deal, while the company refuted the discussions in an email to Business Standard.
According to Tracxn, Girnar’s revenue in FY21 stood at Rs 380.8 crore, compared with Rs 325.2 crore in FY20. It recorded a profit of Rs 22.8 crore in FY21, compared with Rs 13.52 crore in FY20.
Girnar Food & Beverages was launched in 1987 and is promoted by the Shah and Bhansali families. According to ICRA, both families have equal shareholding in the company and are actively involved in all its major functions. The report by ICRA also stated that the tea company has a strong presence in Maharashtra, especially in Mumbai, where it generates the majority of its domestic sales.
“It has a limited presence in Gujarat, Delhi, Karnataka, Jammu and Kashmir, Telangana, and Rajasthan, among others. Domestic sales contribute 40-45 percent to its total revenues, while exports account for the rest. In the overseas market, the company trades in bulk tea, with a strong presence in Russia, from where it generates 80-90 percent of its total export sales,” ICRA in its report on the company.
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Naresh Khanna – 10 February 2025
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