The New York-headquartered company, which has a presence in India through its global acquisition of Tilda Rice Company, is planning to expand its portfolio, which also includes making an entry into non-food categories, for which start-ups can come handy.
“We would like to buy and not just invest in Indian start-up companies in the health and wellness space. There is already a cultivating group within the company, which is into buying small brands and cultivating them,” said Irwin D Simon, founder, President and Chief Executive Officer, Hain Celestial Group.
Globally, the Nasdaq-listed organic and natural products company already has an M&A strategy since it has been acquiring local brands. “We acquired a soup brand in the UK recently, and will look out for interesting start-up companies in India,” he added.
Future Group JV
Supplying to big retailers in the US like Whole Foods, Hain Celestial is betting on the size of the Indian market, having recently forged an equal joint venture with Future Group for foods such as chips, baby nutrition and non-dairy milk.
Besides, Hain Celestial is also planning to enter the personal-care category in India. “We will enter the segment on our own since the JV with Future Group does not include it.”
Meanwhile, the Future Group is expected to invest in excess of ₹500 crore in setting up for the manufacturing and distribution of Hain Celestial food products.
Kishore Biyani, CEO , Future Group, said: “We will make and sell food products from Hain Celestial in India. It will be a long journey with an investment beyond ₹500 crore. Our 165 Big Bazaar stores are already selling their products.”
With manufacturing being set up at Future Group’s food park at Tumkur in Karnataka, Hain Celestial is also planning to consider India a hub to export its products to neighbouring countries in West and South-East Asia.
It is also undergoing collaboration with farmers to grow organic vegetables for its several food brands.
Local manufacturing is also expected to bring down prices for products such as its chips brand Terra, which currently costs ₹100-400. “Hain Celestial brands will become affordable and will compete with brands such as Lays from PepsiCo,” added Biyani.
The food segment currently contributes a turnover of ₹12,000 crore to Future Group.
Source: The Hindu Business Line