Nestle SA, the largest food company in the world, is one of the final bidders vying to buy India’s Capital Foods Pvt in order to increase its footprint in the rapidly expanding economy. The people, who asked to remain anonymous because the information is private, said that the Swiss company has been talking about the terms of a potential deal for Mumbai-based Capital Foods. According to the people, any transaction would likely be worth more than $1 billion for the Indian company.
Ching’s Secret brand spicy vermicelli and fusion chutneys with purportedly “desi Chinese” tastes are produced by Capital Foods. It also offers Smith & Jones culinary pastes and masala mixtures.
Even though negotiations for a possible merger are far along, a number of other parties have also indicated interest in purchasing Capital Foods, so it’s not certain that Nestle will end up winning, according to the individuals.
Over the past 12 months, shares of Nestle’s listed Indian division have increased 10% in Bombay trading, giving it a market valuation of about $22.3 billion. The company opened its first manufacturing facility in India in 1961 and sells a variety of products there, including cereals and yoghurt.
General Atlantic, which acquired a share in Capital Foods in 2018, is one of the company’s investors.
