A Morgan Stanley Private Equity Asia-managed fund has invested ₹152 crore in Southern Health Foods Pvt Ltd, the makers of Manna brand of health foods.

A press release from Southern Health said the money will be used to support the company’s expansion in South India and provide an exit option for existing investors.

In 2015, it had raised ₹30 crore from early growth investors led by Fulcrum, a PE player in Indian pharma and healthcare segment.

The release quoting Arjun Saigal, co-Head, Morgan Stanley PE Asia in India, said foods based on home-grown grains such as millets are regaining popularity and offering nutritional content at affordable cost. The fund is happy to back Manna, a fast growing brand in this segment.

ISAK Nazar, Promoter, Southern Health, said the company is positioned on the health food platform with an array of natural, preservative-free, ethnic foods.

The flagship product of Manna Foods is Manna Health Mix, a ready-to-cook improvisation of a multi-grain mix of cereals, millets and pulses that is cooked in hot milk.

Manna Foods also includes a suite of health food products, including millet-based infant food, millets, soya nuggets, dried fruits and purees. Manna Foods was launched in 2000 when Nazar recognised the need for traditional health foods. It targets the domestic market and the Indian diaspora elsewhere. It has the distinction of being an Indian company licenced to make solid food for six-month-old babies, a segment dominated by three large multinationals. Manna is also targeting a presence in foods for diabetics.

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