Investcorp eyes exit from Kitchen Treasures at up to ₹1,000 crore valuation
Bahrain-based investment firm Investcorp is exploring an exit from its investment in the parent entity of Kerala-based Kitchen Treasures, in a deal that is likely to value the food and spice brand at ₹800-1,000 crore, two people familiar with the matter said.
“Investcorp holds a sub 25% stake and is now looking to exit its seven-year-old investment in the company. They have begun engaging with advisors and the deal is expected to formally launch early next year,” one of the people cited above said.
Owned by the Synthite Group through its subsidiary Intergrow Brands, the company is likely to see a secondary sale by existing investor Investcorp. The transaction may also include a primary component if the company seeks external capital for acquisitions, the second person added.
If the deal goes as planned, it would mark a complete exit for Investcorp, which invested about ₹80 crore in 2019. Both people spoke on condition of anonymity as the discussions are private.
Investcorp declined to comment on “market speculation”, while emails sent to Kitchen Treasures did not elicit a response until the time of publication.
Deal momentum
The packaged food segment is seeing heightened investor interest, with several potential transactions emerging.
Mint reported that Pune-based Nilon’s, which makes pickles, spices and other packaged foods, is exploring a majority stake sale at a valuation of ₹800-1,200 crore. Meanwhile, JM Financial-backed Zoff Foods is exploring a minority stake sale to raise growth capital at a valuation of ₹1,000 crore.
India’s $100 billion packaged food and beverage market is projected to expand to about $150 billion by 2030, according to estimates from market research firm Redseer. Growth is being driven by changing consumer values, urban lifestyles and the rise of quick commerce, which are reshaping what Indians eat and where they buy it.
Business profile
With a legacy spanning over five decades, Synthite is among the world’s largest producers of value-added spices, with a presence in more than 12 countries. The company has a portfolio of several established brands and a turnover of ₹3,000 crore, according to its official website.
Ashok Mani heads Intergrow Foods and Beverages as its managing director and chief executive, under which the Kitchen Treasures brand is marketed. Mani belongs to the third generation of the family and is the son of Synthite group finance director Mani Varghese, who is the son-in-law of the group’s founder-chairman, CV Jacob.
Launched in 2013 to serve the business-to-consumer (B2C) segment, Kitchen Treasures also caters to the HORECA (hotel, restaurant and catering) segment, which continues to account for a major part of its business.
The brand is known for its range of spices, masalas and pickles, made with fresh ingredients that are sourced, processed and finely powdered using modern techniques. Its other products include a breakfast series, culinary pastes, payasam mixes, pulses, essentials, ready-to-cook items and a special range.
In FY25, Intergrow reported operating revenue of ₹219.52 crore, compared with ₹234.7 crore a year earlier. Its net profit narrowed to ₹1.37 crore from ₹11.3 crore in FY24, according to the company’s filings with the Ministry of Corporate Affairs, sourced by Tofler.