Orkla Group, the parent company of MTR Foods, has Rs 50-crore venture fund with set up a an aim to make early-stage investments in start-ups. The fund, christened MTR Seed Fund, will invest mainly in food tech-related startups in India over 2017 and 2018.

It is the first such fund set up by the Orkla Group outside of Scandinavia.

“We are mainly looking at earlystage startups, these could be tech startups that fit with our current business or startups in sectors that focus on creating innovative food products, production tech, packaging technology or distribution,” said Peter A Ruzicka, president of Orkla Group.

With Rs 50 crore, Orkla eyes a bite of food-tech start-ups. The company is also open to acquiring a start-up that might complement its current business in India or one that might have the potential to become a global product that can strengthen the company’s position in any of the markets it is present in.

“We have a long-term approach, so we may invest in one to 20 startups.Depends on what we find attractive, we may acquire a startup or sell to a private equity fund as an exit strategy,” said Ruzicka.

The company said it plans to target the millennial population as against MTR Foods, which earlier focused mainly on homemakers.

In April, MTR Foods launched a three-minute breakfast category that targets millennials, enabling them to have a quick on-the-go Indian breakfast ranging from poha to upma, and oats.

The company will invest and have a stake ranging between 26 per cent and 49 per cent in the start-ups. Start-ups that become part of the MTR Seed Fund will have access to MTR Foods research and discussion team, as well as to the company’s in-house group of chefs if the product is food-based or common services such as branding, legal assistance, treasury and accounting services.

“We can help with varied aspects from branding of the product to distribution and consumer based knowledge to technical know-how, we can provide the support required,” said Ruzicka. “There is a lot of potential in the Indian market and we are already talking to start-ups but nothing is finalised yet.”

MTR senior management will review food tech and other start-ups before finalising the first investment.

Source- Economic Times