Bunge to acquire edible oils business of Amrit Banaspati

Bunge India, the subsidiary of American agribusiness company Bunge, has entered into an agreement to acquire the edible oils and fats business of India-based Amrit Banaspati for Rs2.21bn ($40.87m).

The agribusiness company will also pay an additional Rs1.04bn ($19.23m) to acquire rights to Gagan, a hydrogenated vegetable oil brand owned by Amrit Corporation, the parent company of Amrit Banaspati.

Amrit Banaspati’s edible oil and fats business includes brands such as Amrit, Bansari and Ginni, and a manufacturing plant in the state of Punjab that features equipment and facilities for refining crude edible oils, palm oil fractionation, hydrogenation, margarine production and packaging.

Following the completion of the acquisition, employees pertaining to its edible oils and fats business will be transferred to Bunge.

Bunge will also pay Rs470m ($8.69m) as a non-competent fee to key promoters Naresh Kumar Bajaj, Ashwin Kumar Bajaj and Vikram Kumar Bajaj.

The transaction is subject to regulatory clearances and other customary closing conditions.

Bunge India managing director Adhiraj Sarin said that Amrit, Gagan and Ginni are trusted names associated with preparing tasty food, and the company intends to build on their strong brand heritage.

"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," Sarin added.

Amrit Corporation, established in 1940, is engaged in the milk business, producing a range of UHT milk products for the food service sector, and also has a real estate division.

Bunge India originates, refines and markets a wide portfolio of edible oils and fats to cater to food manufacturers, food service companies and consumers across India, and it owns consumer brands such as Dalda, Masterline and Chambal.