Monginis Foods, an over 100-year-old bakery products brand which was acquired by the Khorakiwalas in 1970, is attracting the attention of investors.
It is learnt that Motilal Oswal Financial Services (MOFSL) and a few private equity players had made some overtures towards picking up a stake in Monginis Foods. The Khorakiwalas though seem to be unwilling to dilute their holding at this point in time.
When contacted, Monginis Foods CMD Zoher Khorakiwala said: “We do not intend to dilute our stake in the near future.” Motilal Oswal, chairman, MOFSL declined to comment.
The move comes at a time when Monginis Foods is chalking out a fresh business strategy to take the company beyond brand 'Monginis'. For instance, the firm has forayed into the premium chocolate gifting segment with a new brand called 'Swiza'.
Swiza, which has already opened an outlet in the western suburbs of Mumbai, is on the lines of chocolate boutiques such as Fantasie. Being synonymous with 'celebrations' and 'gifting', Swiza is like an extension of the company's cakes business.
Monginis is also setting up exclusive outlets for snacks and sips targeting youngsters under the brand 'Canape'. This brand is targeted at youngsters in the age group of 14 to 25, who may have grown beyond cakes and are looking at trendy joints to hang out in groups.
The idea behind investing in new brand names is to avoid over-burdening and stretching of the Monginis brand.
Even after the business split in the Khorakiwala family, 56-year old Zoher Khorakiwala continues to handle Monginis Foods. Zoher is the nephew of F T Khorakiwala, the group's patriarch. In the reorganisation of the family-run retail-to-pharmaceuticals business, Zoher's late father Husheini T Khorakiwala got the bakery business.
Today, with well over 400 outlets under its wings and an annual turnover of around Rs 135 crore, Monginis is aiming at a pan-India presence.
Since Monginis Foods has chosen to take the franchisee route for expansion, Khorakiwala said the company does not need funds from private equity investors who are making a beeline for picking up stake in the company.
Source: Times of India