Mother's Recipe acquires Kolkata's ELMAC Agro

As part of their expansion strategy, Pune based Mother’s Recipe (A part of Desai Brother’s Ltd. (DBL) - food division) today announced the  acquisition of one of Kolkata’s trusted brand ELMAC (Elmac Agro Manufacturing Pvt. Ltd (EAMPL)). This alliance valued at 1.9 times sales turnover will help their aim of capturing a larger market share in the Indian packaged food industry in the East. 

• The association will help Mother’s Recipe expand its existing product portfolio and strengthen its presence in the Eastern region
• This alliance will take Mother’s Recipe’s current distribution network in the East from 200 to 300
• Mother’s Recipe targets a growth of 30% this fiscal

Cashing on ELMAC’s existing manufacturing and network, will enable Mother’s Recipe to strengthen their reach and cater to the eastern region more effectively and efficiently, while expanding their product portfolio. In the new setup the existing management will continue to look after the manufacturing & operations facilities, while Mother’s Recipe will manage the overall marketing, sales and distribution for the brand ELMAC. Over a period of time, Mother’s Recipe looks at growing their volumes from Kolkata and the eastern region which currently contributes about 20% of their domestic sales.

DBL will further strengthen the ELMAC brand using its good brand re-call in the region. Desai Brothers will continue supplying products to ELMAC’s existing customers under their Private label brands, who will now stand to benefit from enhanced efficiencies of production, timely supply & stringent quality control. The company understands the potential of supplying quality products for private label and recognizes its business potential, hence will specifically focus on growing this part of the business with this strategic alliance.

Commenting on the alliance Mr. Sanjay Desai, Executive Director, Desai Brothers Ltd said, “This deal will be a positive development for DBL- food division and is in line with our company’s vision to be a valued brand in Indian Packaged Food Space. ELMAC which has a strong brand equity in the eastern region will help us strengthen our existing product portfolio and enable us in expanding our product categories. Plans of new product extensions under the Mother’s Recipe brand name which is already in process is expected to give us an additional growth of at least 25% in eastern region. Work has already started to refurbish & expand production capacities at EAMPL and realigning product portfolios. In the next three years we are targeting a sales turnover of over INR 70 crores under ELMAC brand from the region.”

In the Retail segment ELMAC products will focus on sauces & condiments and in the Food Service (HoReCa ) segment their well accepted sauces, condiments, canned Foods will augment the presence of Mother’s Recipe range of culinary products.

Desai Brothers Limited, which diversified into Food business in 2002 under the brand name 'Mother's Recipe' has witnessed exponential growth, CAGR of over 25% and has a strong presence across India and the global arena especially in the Middle East, Australia, UK, Europe, US, Canada and Africa, being one of the largest providers of traditional & authentic Indian taste exported to more than 40 countries in the world. The current product portfolio in India consists of Pickles, Condiments Pastes, Blended Spices, Ethnic Chutneys, Papad, Ready to Cook Spice Mixes and Instant Mixes.

Speaking about the company’s growth plans Mr. Desai said, “The company is eyeing a growth of 30% in the current financial year against a turnover of over INR 200 Crore in 2014-15. We entered the food business with an aim to provide consumers with a holistic cooking and culinary experience while perfectly balancing health and taste. Apart from the pickle category where we command a robust market share of 25%, the company intends to grow its other verticals like the RTE, RTC and instant mixes with a range of new product launches under each category.”

The company’s product expansion in RTC and RTE food segment comes at a time when the sector is emerging and growing extensively. A fast paced urban lifestyle, increasing prevalence of the nuclear family structure, rising disposable income and rising number of globetrotting Indians who are willing to experiment with food, are all favorable factors encouraging adoption of RTC/ RTE foods in India. Further, the growth of modern retail has provided unmatched brand and category visibility and promotional opportunities to convenience foods.

The Mother’s Recipe brand also boasts of a robust distribution network being covered by 700 distributors across the country. The company caters to diverse formats ranging from mom & pop stores, modern trade outlets, multi-functional outlets, e-commerce, Defence and to Hotel Restaurants & Cafes (HORECA)