November 16, 2024 | 12:00am
MANILA, Philippines — Del Monte Pacific Ltd. (DMPL), a Singapore and Philippine-listed company, is beefing up its operations in India after getting a direct stake in consumer food products company Agro Tech Foods Ltd. (ATFL).
DMPL said it is restructuring its investment in India by exchanging its shares in Del Monte Foods Private Ltd. (Del Monte India) for a 13-percent direct shareholding in ATFL.
ATFL, a company that is dual-listed on the National Stock Exchange and Bombay Stock Exchange in India, will also acquire the 59-percent equity stake of the Bharti Group in Del Monte India.
DMPL said that its direct investment in ATFL means that it would be invested in a broader business that includes profitable product categories, which have yielded shareholder returns for several years.
According to DMPL, a direct equity stake in a company whose ordinary shares are listed in stock exchanges means more liquidity for its shareholders and enhanced corporate governance practices and benefits.
“India has been an exciting and flourishing market, and we are proud of the brand’s journey and impact on the Indian food industry,” DMPL executive chairman Rolando Gapud said.
ATFL is regarded as a leading player in India’s food and edible oils industry. It holds popular consumer brands such as ACT II popcorn and Sundrop edible oil.
“Under Sundrop Brands’ platform, we believe the Del Monte brand will reach new heights in India. This transaction supports the group’s strategic focus on its core markets and partnerships that drive growth,” Gapud said.
ATFL has just rebranded itself as Sundrop Brands, reflecting a renewed commitment to its growth plans.
Its acquisition of Del Monte India is seen bringing an established portfolio of food products under ATFL’s umbrella, marking a significant step forward in its strategic expansion.
DMPL said that ATFL is well positioned to further grow the Del Monte brand in India.
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