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McCormick to own 100 pc of Kohinoor rice business
McCormick & Company, Inc, a global player in the food flavouring business, is set to acquire the remaining 15 pc equity ownership in Kohinoor Speciality Foods India Private Limited (KSF), i.e. Kohinoor branded Basmati Rice business in India.
McCormick’s acquisition from Kohinoor Foods Ltd (KFL), will thus make the company the 100 pc owner of the Indian business of Kohinoor branded basmati rice, one of India’s well known basmati rice brands. Earlier in September 2011, McCormick purchased the Kohinoor brand and other trademarks along with 85 pc ownership in KSF.
This development places the company in prime position to accelerate its growth and investments plans in India. McCormick has invested more than $150 million in India since 1994 through four ventures which employ over 2000 people today.
The company’s two joint ventures in South India are equipped with the processing technologies and produce spice products for India and international markets. In 2014, it set up a corporate services entity based out of Gurgaon, India, leveraging on India’s IT talent to serve the company’s global needs.
“As a key emerging market, India presents exciting growth opportunities for McCormick. We have invested in India continuously for over two decades and are deeply committed to the Kohinoor brand in this market. Our goal is to leverage Kohinoor brand from a Basmati rice brand to a Rice and Spice leader in this market through our passion for flavour,” said Malcolm Swift, President of McCormick’s International Business.
In establishing a stronger operating model, McCormick has ceased operating arrangements with Kohinoor Food Limited and its promoters, by way of an amicable settlement agreement. Both parties have initiated the process to withdraw all legal proceedings. “Our recent infrastructure enhancements, the building of stronger R&D capabilities at our Food Factory in Haryana and our plan to expand our offerings under the ‘Rice and Spice’ platform are building on our decades of commitment to this market,” said Amit Mehta, Managing Director, Kohinoor Speciality Foods India Private Limited. “We’re here to stay and we are set on our mission to provide the ‘Best quality food products.”
McCormick & Company, Inc, which records $4.4 billion in annual sales, manufactures, markets and distributes spices, seasoning mixes, condiments and flavoured products to the food industry - retail outlets, food manufacturers and food-service businesses.