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Vadodara-based frozen foods supplier Saraf Foods has set its eyes on the frozen food consumer segment with its brand Pure Bitez. The company is currently expanding its freeze-drying capacities, besides diversifying into air-drying for bulk consumers, with fresh fund infusion through a mix of investors including existing investors as well as Danish investment fund IFU.
In its second round of fund-raising, Saraf Foods raised ₹30 crore from a consortium of investors comprising Saraf family, PEDORIA and DSG Consumer Partners and IFU.
“Until 2013, we did not raise funds through private-equity players. This is our second round of fund-raising through PEs and investors. The promoters’ holding in the company continues to be majority. The latest round will push up the capacities and help us diversify air-drying. Once our capacities go on stream, latest by August, we plan to focus on the consumer segment and strengthen our existing brand of Pure Bitez,” said Suresh Saraf, Managing Director, Saraf Foods.
In 2013, the company raised ₹10 crore from DSG Consumer Partners, also involving a term loan from the State Bank of India.
The company, which sells ingredients to the food industry, is currently in the process of integrating individual quick-freezing.
Looking at the potential and growth of the segment, Saraf Foods has set an ambitious target of ₹100 crore in revenues, which is over 200 per cent growth from ₹30 crore in 2017.
“The funds raised will bolster our upcoming project. A new unit, which will come up near the existing facility, will commence operations from end of June,” Saraf said.
The independent government-owned Danish fund IFU co-invests with companies as well as developers wishing to supply technology to develop or operate businesses within the entire agribusiness value chain, from farm to fork. It also offers risk capital and advice for agribusiness projects in developing countries and emerging markets.
Rohit Goyal, Senior Investment Manager at IFU, will join as a member of the Saraf Foods board.
IFU has assisted over nearly 900 Danish companies, and provides risk capital and professional advice in markets such as Asia, Africa, Latin America and parts of Europe.
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