KOCHI: Tata Consumer Products Limited (TCPL), the second-largest player in the world branded tea market is acquiring Kottaram Agro Foods (KAF), which owns the brand 'Soulfull'.
A definitive agreement to purchase a 100 per cent equity stake of KAF was signed on Tuesday, a TCPL release said. Sources said the breakfast cereal startup, owned by a Kochi-based entrepreneur Prashant Parameswaran is being acquired for Rs 155 crore.
Kottaram Agro Foods had a turnover of Rs 39.38 crore in 2019-20. The acquisition is expected to be completed by March 31, 2021.
Agri-based venture fund Aavishkaar Capital had invested $8 million in KAF in 2019 at a valuation of $17 million. The venture fund owns 45 per cent in the company while the founder held 43 per cent.
The Bengaluru-based start-up was founded by Prashant Parameswaran, Rasika Prashant, Dr KK Narayanan and Amith Sebastian in 2013. The brand operates in the health and wellness food segment with a portfolio of millet-based products for kids and adults. It currently has a strong presence in select urban markets in south, west, and north India.
Born and brought up in Kochi, Prasanth completed his schooling at Chinmaya Vidyalaya in Vaduthala and had his mechanical engineering degree at PSG College of Science and technology in Coimbatore. He was attracted to the agro product's market during his visit to Punjab, where a family friend helped him associate with an agritech firm. Later Prasanth went to Boston where he completed his MBA. After studying the agro-food market for years he launched Kottayram Agro Foods in 2013.
"This acquisition is a good strategic fit for Tata Consumer Products. It opens to us significant new market opportunities in the fast-growing mini-meals segments and helps us partner a passionate and ambitious team of entrepreneurs who will remain and become a part of the Tata Consumer Products team," said TCPL MD and CEO Sunil D'Souza.
"We are extremely proud to associate with Tata Consumer Products which provides us a great platform for furthering Soulfull’s purpose of making ancient millets relevant for the 21 st century. Tata Soulfull will enhance the brand’s credibility and make health more accessible and mainstream while retaining its vibrancy. This partnership would enable us to not just scale our existing business but also enter new categories in the fast-growing health and wellness market," said Kottaram Agro Foods MD and CEO Prashant Parameswaran.