Agro Tech Foods Rebrands as Sundrop Brands After Major Acquisition

Agro Tech Foods Limited acquires 100% stake in Del Monte Foods Private Limited, rebranding as Sundrop Brands. Bharti and DMPL become shareholders. The acquisition grants a perpetual license to Del Monte's brand in India, bolstering Agro Tech’s product line with access to advanced facilities.

Agro Tech Foods Limited, a leader in the edible oils sector known for brands like ACT II and Sundrop, announced on Thursday its acquisition of Del Monte Foods Private Limited. The acquisition involves a complete takeover, pulling Del Monte into its fold, and marking a bold step in Agro Tech's strategic growth.

In a significant rebranding move, Agro Tech will now operate under the name Sundrop Brands, signaling a renewed growth commitment. The company emphasized this transition as a pivotal step towards aligning with its aspirations and expanding its footprint in the food market under the new brand identity.

Previously a joint venture between Bharti Enterprises and DMPL India Limited, Del Monte Foods' integration into Agro Tech's operations is an elaborate strategic blend. Bharti and DMPL will receive shares in the acquired entity, resulting in Bharti owning approximately 21% and DMPL 14% of the company.

The acquisition comes with the boon of a perpetual license to use the Del Monte brand in India. This positions Agro Tech to significantly leverage Del Monte's established market presence, particularly in the diverse segments of Italian sauces, ketchup, dips, spreads, and beverages.

Agro Tech's CEO, Asheesh Kumar Sharma, expressed optimism over the acquisition, highlighting the alignment with Sundrop Brands' vision of enhancing food experiences. This deal opens the gates to Del Monte's advanced manufacturing and R&D capabilities in Tamil Nadu and Punjab, aiding in product diversification and innovation.

On the other hand, Bharti Enterprises' Joint Managing Director, Harjeet Kohli, heralded the merger as a milestone, elevating Bharti to the position of the second-largest shareholder. The acquisition is anticipated to strengthen Sundrop Brands' market position, responding to India's increasing demand for quality and convenience in food products.

The finalization of this acquisition is set for completion within 60 days, subject to regulatory clearance from the competition commission of India.

(With inputs from agencies.)