Bunge India acquires Amrit Banaspati edible oils business

Bunge India has completed the acquisition of the edible oils and fats business from Amrit Banaspati, including the rights to Gagan, a hydrogenated vegetable oil brand owned by parent company Amrit.

In December, Bunge announced its intent to buy the edible oils and fats business of Amrit Banaspati for Rs2.21bn ($43.67m), and the rights to Gagan brand for an estimated Rs1.04bn ($20.55m).

According to Bunge, the acquisition will strengthen its consumer food business in India by expanding its distribution reach, manufacturing base and brand portfolio.

The acquisition includes Amrit Banaspati’s manufacturing plant at Rajpura in the state of Punjab, the rights to brands such as Amrit, Bansari, Gagan and Ginni, its sales and distribution business, and the transfer of employees involved in the edible oils and fats business to Bunge India.

Bunge India managing director Adhiraj Sarin said: "Amrit, Gagan and Ginni are trusted names associated with preparing tasty food, and we intend 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.

Bunge also agreed to pay Rs470m ($9.28m) as a non-competent fee to key promoters Naresh Kumar Bajaj, Ashwin Kumar Bajaj and Vikram Kumar Bajaj.

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.

Amrit, established in 1940, is engaged in the milk business, producing a range of UHT milk products for the food service sector.