Shakti Bhog Foods Ltd, a Rs 1,400 crore Delhi-based packed food major, plans to acquire three to four food product companies in the current fiscal in India at a combined investment of Rs 200 crore. The acquisition would be made through internal accruals and fundings from financial institutions, said KK Kumar, managing director of Shakti Bhog. However, Kumar said the company may go for an IPO after two years if it required any funding for its future expansions.
The company also plans to set up joint ventures in Australia and Dubai. While declining to disclose financial details, Kumar said the foreign joint ventures would aim to tap value added food market in overseas countries, wheat market in particular. The company has around 70% of market share in the branded wheat flour segment in North India.
In fact the company stopped exporting wheat products from India after the union government banned wheat exports in November last year. Currently, the company?s wheat grinding capacity stood at 5-lakh quintals per month and would be increased to 5-lakh quintals in the current year owing to market expansion in South India. Shakti Bhog?s product includes wheat flour, gram flour and basmati rice.