Israel’s largest food co to enter India

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Pune, Dec 18: Israel's largest food manufacturer, Tnuva, is planning a foray into India in the dairy segment. Tnuva is also Israel's largest marketing and trading company.

A large chunk of its 2005 revenues of $1.3 billion came from the dairy business. Tnuva's dairies supply 70% of Israel's dairy needs while 45% of the eggs consumed in Israel comes from Tnuva.

The food major has been in the midst of a takeover as part of its privatisation process. Apax Investment Fund of UK has won the tender to pick up a controlling stake in Tnuva for $1.04 billion. Apax Partners is a private equity firm managing assets worth $20 billion.

Haaretz.com (Israeli publication's website) quotes Zehavit Joseph-Cohen, the CEO of Apax in Israel, as saying its plans for Tnuva posting the shareholder approval.

"The plans include building a new dairy in India, as well as buying other companies in the dairy-product sector in that rapidly growing country," Haaretz.com has reported.

Apax Partners has recently announced tapping opportunities in India.

Retail and drugs sectors were identified by Apax Partners Asia chairman Max Burger-Calderon during his visit to India as potential investment sectors.

However, the cooperatives have been opposing the sale. The deal has to be approved by Tnuva's owners and it needs 75% majority to pass. The meeting is scheduled for early 2007.