Amrutanjan Health Care (Amrutanjan), one of the oldest makers of pain balms and cough and cold syrups in the country, has forayed into the fruit-based beverages segment by acquiring Siva?s Soft Drink, a privately-held local company for R 26.20 crore. FE had earlier reported in December that Amrutanjan will diversify into food and beverages segment by acquiring a local player.
Sources in the know said Amrutanjan must have acquired the entire paid-up capital of 900,000 shares of Siva?s Soft Drink. The acquisition includes Siva?s famous Fruitnik, a mango fruit beverages brand sold in South India.
The company generates an annual turnover of R 20 crore. Siva Soft Drink, which makes soda, water and other fruit-based beverages like apple and grape, was not doing well.
When contacted, an Amrutanjan official, who maintained anonymity, said, ?We have been looking at some strategic growth opportunities for quite some. And this is the first milestone for us.?
The official said, ?Though plans have not been drawn on how to take up the acquisition further, we believe Amrutanjan can market the mango-based fruit drink across the country. We will work on this aspect soon. This is an expansion strategy for us.?
To a specific question, the official said, ?We are yet to assess the production facility. We will look at all possibilities like capacity expansion, introducing new fruit-based drinks apart from extending Amrutanjan brand to the drink.?
Amrutanjan had decided to make a foray into the ready-to-eat food and beverages market to spur growth.
The company is also planning to set up Pain Clinics throughout the country under its own brand name Amrutanjan.
The company, which has been in the news for sometime on a hostile corporate raid, is expecting the new initiatives to spur growth.
Besides, it is also scouting for potential buy outs in the food and beverage space either at the regional or a national level.
The company expects to venture into the ready-to-eat market (vegetarian) with dozens of products to start with. It has tied up with a local manufacturer and will market these products under sub-brand with Amrutanjan as the master brand.
