Ahmedabad-based Anil Group has firmed up plans to enter the food processing and hospitality business. On Monday, it announced the acquisition of a 90% stake in Vadodara-based Vigo Bio-Tech Dairy. The deal size is expected to be around Rs 22-25 crore.
Besides investing close to Rs 100 crore to ramp up this newly acquired dairy business, the group will also invest an additional Rs 15 crore to open a chain of restaurants.
Anil Group consists of the flagship Anil Products Limited, one of the oldest and largest corn wet millers in India. It also comprises of Anil Hospitality Ventures Limited and Anil Biochem Limited. Anil Group is evaluating options to ramp up the capacity of Anil Products that is expected to report revenues to the tune of Rs 350 crore for the current fiscal. The diversified Lalbhai Group promoted Anil Group in mid 1930s. Anil group has now adopted ‘farm to fork strategy’. Its group company Anil Hospitality has picked up 90% stake in Vigo.
“The acquisition of Vigo and expansion of Amazo chain of gelateria, café and multi cuisine restaurants are moves to drive growth by leveraging emerging opportunities in the food processing sector. Total consumer spend on food and food products amounts to 21% of India’s GDP and we have decided to move up the chain. We will soon launch specialty dairy products under our own label,” Anil Group managing director Amol Sheth told ET. He added that the product range of Vigo has synergy with Anil Products and Anil Hospitality’s existing product range. Anil Group will infuse funds through equity and debt for its hospitality, food processing, biotechnology and bioengineering.
Besides increasing milk production in own farm (by adding more cows), Anil Hospitality will also procure milk from small farmers subsequently. Anil Hospitality will invest Rs 75-100 crore in establishing processing plants and creating cold chain network for distribution. Meanwhile, it is planning a national roll-out of its restaurant chain ‘Amazo’ in parts of the country.
“We have gained good experience in restaurant business with our existing four outlets of three formats. During next fiscal we want to take it forward with an investment of close to Rs 15 crore to start 15-20 outlets of Amazo in Gujarat to begin with. Gradually, we will spread out of Gujarat,” said Mr Sheth. Anil Hospitality will open own outlets besides signing franchisee partners.
Vigo has installed a high technology 80 – unit rotary milking parlour, procured from Ireland, and claiming to have Asia’s largest set up. The target company has 550 holstein friesian hybrid cows that Anil Hospitality is planning to increase in phases. Vigo’s dairy farm is located on about 32 acre of land near Halol. It is aiming to harness Vigo’s expertise to manage value chain of dairying including milk production, manufacturing of value added products, bio-gas and power generation among others.
Source: Economic Times