IL&FS May Buyout Hershey's Stake In JV
IL&FS Invesment Managers Limited is planning to buy Hershey's 51% stake in JV Godrej Hershey Limited, following management differences in running the entity.
In 2007, Hershey invested $60 Mn in the JV for 51% stake by acquiring entire 40% stake of IL&FS, 5% from Godrej Industries' 48% stake, and 6% from A Mahendran's 12% stake.
Accordint to ET, IIML may infuse additional funds to recharge Hershey in India and the company will operate with its original name Godrej Beverages & Foods. If the deal goes through, Hershey's will operate on its own in India through a wholly-owned subsidiary.
Hershey was interested only in the chocolate business in India in order to compete with Cadbury and Nestle, while the Godrej group was keen to drive growth of confectionery as well as beverages within the ambit of the venture.
Godrej Hershey Limited, a 51:49 joint venture formed in 2007 between the Godrej Group and American chocolate maker Hershey’s, operates in confectionary, beverages and grocery items.
Godrej Hershey with four regional offices at Mumbai, Delhi, Chennai and Kolkata, has a sales force of 500 people reaching to more than a million retail outlets through 1500 distributors spread across India.
Currently, the JV has only one product from Herhey's - Hershey's syrup. The JV also had confectionery portfolio under Nutrine, an acquisition done by Godrej in 2006.
The Nutrine portfolio has products like Maha Lacto, Maha Choco, Nutrine Eclairs, among others. The confectionery factory is located in Chittoor (Andhra Pradesh).
The JV's also has a beverage portfolio, all from Godrej, which consists of Jumpin (Fruit Drinks), Xs (Juices and Nectars) and Sofit (Soya Milk).
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 22/02/12 | Hershey (Exit) - Godrej Hershey -IL&FS | Private Equity | IL&FS Investment Managers Limited | - |
| 04/04/07 | Godrej Hershey - Leverage India Fund, Exit | M&A | 54.00 | |
| 03/04/07 | Godrej Hershey - The Hershey Co. | M&A | The Hershey Co. | 54.00 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 15/05/12 | M&A | Radico Khaitan Limited | Whisky Brands - Yezdi | - | Completed |
| 10/05/12 | M&A | General Mills Inc | Parampara Foods Products Private Limited | 12.18 | Completed |
| 09/05/12 | Private Equity | Looking For | Sanwaria Agro Oils Limited | - | Planned |
| 23/03/12 | M&A | Naturex | Valentine Agro Private Limited | - | Completed |
Fund |
||||
| Name | Corpus | Target Sector | Website | KeyContact |
|---|---|---|---|---|
| IL&FS Investment Managers Limited | BFSI Retail Infrastructure IT/ITES/Technology Consumer Goods |
www.ilfsinvestmentmanagers.com | Vipin AgarwalSaleh AfimiwallaRumen BarjatyaRuchita ManiarDeepa SankaranSuneet GuptaArchana Niranjan HingoraniAlok BhargavaShahzaad DalalManoj BorkarMark A SilgardoSanjay MitraSunil Vasantrao DiwakarBina TrivediSrinivas BaratamAnant Kulkarni | |
Company |
||||
| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Godrej Hershey Limited | Hershey Netherlands BV Godrej Group |
Pirojshanagar, Eastern Express Highway, Vikhroli (E) | Tata Tea Limited | www.godrej.com/godrej/GodrejHersheys/index.aspx?id=15 |
| IL&FS Investment Managers Limited | ||||
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