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Gala-Kerzen of Germany, manufacturer of ornamental candles, has acquired a majority stake in Ramesh Flowers, a leading exporter of dry flower products and room fragrances.
Gala-Kerzen, backed by the European equity fund, Equistone, hopes to create an all-in-one company for the entire range of interior decor items spanning candles, potpourris and frangrances.
The Gala Group has a €70 million (Rs 600 crore) business in fragrant candles. Partnering with Ramesh Flowers, a $35-million (Rs 220 crore) exporter of a wide range of fragrances and other interior decor items, provides a strong synergy for growth, said Dirk Langhammer, CEO, Gala-Kerzen GmbH, in an interaction with BusinessLine ahead of the formal announcement later today.
Tanja Berg, Associate, Equistone, said, Gala, backed by Equistone, has acquired a 70 per cent stake in Ramesh Flowers, including its US operations under Flora Classic. This creates a strong player that is looking at global scale of operations. There is no overlap between the two companies and their coming together will help both grow.
However, officials declined to divulge the value of the transaction.
Mahendra Raj Singhwi, Chairman and Managing Director, Ramesh Flowers, said the Tuticorin-based company is entirely export-oriented and has markets in the US and UK.
Gala Group is strong in Europe and also has a presence in US through Jewel Candles, a product sold online. With the technological and financial backing of the European company, the partners can expand in India, entire Europe and the US.
A capital investment of about €8 million is in the pipeline “to strengthen the business’’ which has the potential to grow multifold in the next 3-5 years, he said.
Ramesh Flowers also has a presence in fragrant candles under the Maeva brand. Jewel candles will be an “entirely new concept’’. Marketing of the products will primarily be online. "That is the future of gift and home decor items,’’ of this type, Singhwi said.
Ramesh Flowers is among a handful of organised players in potpourris, dried flower arrangements and fragrances. It was started in 1982. It employs over 3,000 workers.All the brands under both companies will grow and expand into new markets, he said.
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