ITV

Tag: GD Foods

  • Why Adani Wilmar wants to swallow Tops brand owner GD Foods

    Why Adani Wilmar wants to swallow Tops brand owner GD Foods

    MUMBAI: Packaged foods giant Adani Wilmar Limited (AWL) has developed an appetite for acquisitions, the latest one being for GD Foods Manufacturing, a privately held maker of kitchen foods and ingredients. 

    It informed the  Bombay stock exchange through a regulatory filing  today of  its plans to acquire the company which is the maker of the popular Tops  brand of sauces, pickles and other food products. It informed the bourse that  it has signed a  share purchase agreement (SPA) to acquire 80 per cent of its equity capital  at a price per share based on an enterprise valuation of Rs 603 crore. 

    The acquisition marks a significant step in AWL’s strategy to diversify its product portfolio beyond edible oils into higher-margin food categories. 

    The deal aligns perfectly with AWL’s ambition to strengthen its position in the branded foods segment. GD Foods, with its Tops brand, generated Rs 386 crore in revenue for FY24, growing at an impressive 15 per cent CAGR over the past three years. The company offers more than 80 products across eight plus categories and has established a strong presence in north and central India with over 150,000 retail touchpoints spanning 15 plus states.

    Key synergies from the acquisition include:
    * AWL will significantly enrich its offering with high gross-margin products while maintaining focus on kitchen essentials.
    * The acquisition brings another strong brand to AWL’s kitchen essentials category.
    * GD Foods adds new product categories with limited competition from national players, particularly in sauces where Tops is the No 1 brand in culinary sauces and No 3 in tomato ketchup in North India.

    AWL plans to unlock value through its robust sales and distribution network. Its  deep partnerships with modern retail channels, including quick-commerce platforms, will benefit the Tops brand. The acquisition will expand Tops’ reach into rural markets using AWL’s established infrastructure, says the latter. 

    North India, which is Tops’ core market, is also AWL’s strongest region, creating immediate synergies. AWL will leverage its pan-India presence to introduce select Tops products to new markets The combined entity aims to capitalise on AWL’s strong partnerships with organised retailers.

    AWL will initially acquire 80 per cent of shares from existing promoters, with the remaining 20 per cent  to be acquired in phases over the next three years at a pricing formula agreed upon in the SPA. The existing promoters will continue to support the business transition, and GD Foods will operate as a separate entity. The acquisition will be funded through internal accruals and IPO proceeds (if applicable), with completion targeted within 60 days, subject to customary closing conditions, said AWL.

    The deal comes as India’s packaged foods market is showing tremendous growth potential, with significant  headroom for branded products to gain market share from the unorganised sector. 

    * Edible Oils: Rs 2.0 lakh crore market with 75 per cent  branded product penetration
    * Wheat: Rs 1.5 lakh crore market with only 12 per cent branded product  penetration
    * Rice: Rs 2.1 lakh crore market with just 11 per cent  branded product penetration
    * Pulses & Besan: Rs 1.2 lakh crore market with merely 5 per cent  branded product penetration 
    * Sugar: Rs 0.6 lakh crore market with 6 per cent  branded product penetration
    * Spices: Rs 1.4 lakh crore market with 18 per cent  branded product penetration 

    For both companies, this strategic move represents an opportunity to combine complementary strengths: AWL’s manufacturing excellence, widespread distribution network and financial might paired with Tops’ strong brand equity, innovative product range and market leadership in specific categories. 

    AWL currently has impressive scale with:
    * Packaged staple foods revenue of approximately Rs 37,000 crore (as of Dec’24).
    * Household reach of 121 million
    * 2.1 million retail touchpoints
    * Edible oil division with last twelve months (LTM)  Dec’24 revenue of Rs 45,208 crore.
    * Food & FMCG division with LTM Dec’24 revenue of Rs 6,150 crore.
    * Industry essentials division with LTM Dec’24 revenue of Rs 7,369 crore.

    Tops brings several valuable assets to the table:
    * Diverse portfolio spanning sauces, condiments, meal preparation items, and cooking aids
    * Strong presence in key North Indian markets including Uttar Pradesh, Delhi, Haryana, Bihar, Punjab, Uttarakhand, and Rajasthan

    KPMG India Corporate Finance is serving as exclusive financial advisor to AWL with PricewaterhouseCoopers Services LLP and Cyril Amarchand Mangaldas conducting due diligence and Cyril Amarchand Mangaldas providing legal counsel.

    AWL has demonstrated capability in scaling acquired brands. Amongst its notable successes figure the launch of Alife Soap in 2020 which crossed Rs 100 plus crore in sales within two years. The acquisition of Kohinoor in May 2022 saw it generating Rs 350 plus crore in sales within 18 months. The Hotels, Retail and Catering (HoReCa) team established in Q1 FY23 generated Rs 600 plus  crore in sales within two years. 

    With that kind of a track record, the acquisition can only be a good and taste-filled recipe for success. 
     

  • Tops joins Horn OK Please festival as presenting partner

    Tops joins Horn OK Please festival as presenting partner

    Mumbai: GD Foods MFG (I), the company behind Tops, has announced its partnership with the Horn Ok Please Festival as the ‘presenting partner’ for the 13th edition. The festival will take place on 16 and 17 November 2024 at JLN Stadium in Delhi, featuring a vibrant lineup of Punjabi superstars, rappers, and hip-hop icons.

    As the presenting partner, Tops will play a key role in curating an exciting mix of food, music, and cultural experiences that reflect the energy of today’s youth. Known for its diverse range of products that combine taste, quality, and trendsetting appeal, Tops sees this collaboration as a great way to connect with a dynamic, culture-driven audience. The brand has been associated with the Horn Ok Please Festival since 2019.

    “We are thrilled to partner with Horn Ok Please as the Presenting Partner,” said GD Foods vice chairman Dr Nitin Seth. “Our brand has always embraced the enthusiasm and creativity of young people, and this festival embodies that same spirit of innovation, self-expression, and cultural celebration. This association offers an exciting opportunity for us to engage with the vibrant youth of today, supporting an event that reflects their versatile talents and passions, and their love for music and food. We are committed to delivering a brand experience that resonates with the ever-evolving tastes of our consumers, and this collaboration aligns perfectly with our mission of delivering India ka top taste to our consumers.”

    As part of the collaboration, Tops will also introduce a series of exciting activations and engagements at the event including a specially curated menu of delectable dishes prepared with Tops products, further enhancing the festival’s immersive vibe and offering fans a chance to engage with the brand in new and innovative ways.

  • GD Foods to expand its presence in the Eastern markets

    GD Foods to expand its presence in the Eastern markets

    KOLKATA: The fast-moving consumer goods (FMGC) company, GD Foods Manufacturing (India) that has two brands – Tops and Royal Taste – under it, plans to expand in the eastern region.

     

    In the present fiscal (2013-14), the company has earmarked four per cent of the turnover on the marketing spend that would include on-air and on-ground activities. However, in the next fiscal the spends would increase marginally, going up to five per cent.

     

    The company wants to expand its presence further in the eastern region by increasing the spends as well as by entering with the Royal Taste products beginning with Kolkata market in the next five-six months.

     

    The company has no plans to set up its manufacturing base in the eastern region but in order to capture the markets of Bihar, Odisha, Jaharkhand, it is looking at the best distribution possibilities.

     

    In the current fiscal, the company spent around Rs 8 crore on marketing and advertising initiative.

     

    Also, GD Foods which witnessed a turnover of Rs 153 crore in the last fiscal (2012-13), is confident to cross sales of Rs 200 crore in the current fiscal 2013-14. “Our turnover is likely to be higher than Rs 200 crore in FY14,” said GD Foods VP, Marketing Monika Solanki.

     

    Before foraying in the Kolkata market, the company is looking at hitting 360 degree marketing campaigns including outdoor media, regional television and newspapers papers. “Our own team is working on below-the-line activities that also include on-shop activities,” she added.

     

    The flagship company of the group – Tops – with key consumer products categories like jam, tomato ketchup, pickles, instant mixes, custard powder, culinary sauces, vermicelli, jelly among others has crossed 167 stock keeping units. “Tops pickles and culinary sauces are the main categories of products that largely drive GD Foods,” said Solanki.

     

    A media and brand expert from the eastern region says that because of Tops’ popularity, the company will have to be really innovative to make a mark with Royal Taste. “If the company is looking to enter the eastern region with ‘Royal Taste’, it has to do innovative campaigns to win over the existing national and regional players in Kolkata and eastern region,” said the expert.