October 2007
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Amul may acquire stake in Vanilco

The Gujarat-based milk cooperative Amul, leading maker of ice-creams in the country, has expressed willingness to buy a stake in Vanilla India Producer Company Limited (Vanilco), a producer company based in Kochi that has about 2,500 farmers as members. Amul has also agreed to buy Rs. 3.10 crore worth of natural vanillin extract from Vanilco. The order, biggest in Vanilco’s history, will result in the off-take of the entire stock of cured vanilla beans with the producer company, said Paul Jose, managing director of the company here. The deal with Amul was clinched after discussions with Union Agriculture Minister Sharad Pawar in New Delhi, he added. Amul officials assured Vanilco that the subsidy the cooperative gets from the government will be used for promoting natural vanillin, said a communication from Vanilco here. It has also been decided that synthetic vanillin will be phased out from Amul ice-creams within one year, the communication added. […]

Gitanjali close to buying another US gem for $100 mn

Gitanjali Gems is betting big on the US retail market. After taking over Samuels Jewellers in December 2006, the firm is now close to acquiring another leading jewellery retailer for around $100 million. Sources close to the deal said the due diligence process is almost complete, and the company is going ahead with the transaction. “It’s one of the leading jewellery retailers having over 100 outlets across the country. The deal will be completed in two months,” said sources. The company is being advised by Keynote, a Mumbai-based boutique investment bank. Gitanjali shares rose marginally to close at Rs 361 on Thursday. The Mumbai-based company has also lined up plans to raise capital for its proposed acquisition and domestic expansion. The firm wants to raise $100 million through a global depository receipt (GDR) issue. It has also proposed to issue 10 million convertible equity warrants on preferential basis to the promoters and raise around Rs 320 crore. An extraordinary general meeting (EGM) has been called on November 3 to consider the fund-raising plans. […]