Mother’s Recipe (MR) a Pune-based maker of a range of pickles, condiments and ready to eat/cook products has acquired Kolkata based brand Elmac Agro Manufacturing Ltd in a transaction valued at Rs 30 crore.

In the new set-up, Elmac will continue to manage their manufacturing operations while Mother’s Recipe will take care of the marketing, sales and distribution. The company makes a range of sauces, including kasundi, the famed mustard sauce from Kolkata.

While around 20% of Mother’s Recipe’s current domestic revenues come from the eastern part of India, the acquisition will enhance the existing product portfolio and strengthen its volumes from the region, Sanjay Desai, Executive Director, Desai Brothers Ltd, said. The company owns the MR brand.

Work has already begun to refurbish and expand production capacities at Elmac. “We are targeting a sales turnover of Rs 70 crore under the Elmac brand from the region. In the meantime, a plan to expand the manufacturing facilities of the MR brand has also been drawn up.

“In the next 18 months we will set up plants in Pune, Gujarat, Ranibennur and Kolkata. These will be as per international standards and cater to exports as well as to the domestic market,” Desai said, adding that the entire exercise will entail a capex of between Rs 40 and 50 crore. Both this as well as the Elmac acquisition is being funded through internal accruals.

Currently, MR, which comes under the Food Division of Desai Brothers Ltd has an annual turnover of Rs 200 crore and is growing at a CAGR of 25%. Around 35% of its total turnover is from exports.

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