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Food products firm Cargill India is eyeing acquisition opportunities in branded oil segment to strengthen its portfolio in the domestic market.
“We are always hungry for more acquisitions... We are keen to acquire a reasonably strong, even a regional brand,” the Cargill India Director, Consumer Pack Vertical, Aseem Soni, told PTI.
Leonardo, Sweekar
Earlier this year, Cargill had acquired Leonardo brand from Dalmia Continental for nearly Rs 100 crore. In 2011, it had also acquired the Sweekar brand from Marico Ltd.
Soni declined to share any potential target at the moment, but said the company was looking at brands offering niche products.
When asked if the company is looking for any particular type of oil, he said: “It could be in any space. If an oil is offering unique value to consumers, we would look at it but we are not interested in acquiring just a label (brand) with thin margins.”
The company at present sells brands, including NatureFresh, Sweekar, Leonardo range of olive oils, Gemini, Rath and Sunflower Vanaspati.
Refined sunflower oil
Last month, Cargill had also relaunched ‘Sweekar’, the refined sunflower oil brand it acquired from Marico, in the mid-price segment.
“When we acquired Sweekar we changed the product and converted it into a high-end sunflower oil, so it became a superior product. The price went up by 30-35 per cent and we lost out customers. Now we are re-launching Sweekar,” Soni said.
With the re-launch, the company now offers Sweekar as 100 per cent sunflower oil and also retaining its premium product Sweekar Advanced.
‘NatureFresh’
Cargill, which also sells ‘atta’ under NatureFresh, may also look at entering other staples such as pulses after the end of calendar year 2015.
“We have got to reach somewhere in ‘atta’ before we get into other staples. Every new category requires investment.
Right now we want to focus on oil and ‘atta’, In 2016, we may look at new categories,” he added.
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