OfBusiness, formally known as OFB Tech Pvt. Ltd., is a raw material procurement and financing platform for small and medium enterprises. The acquisition gives OfBusiness access to Koeleman India’s state-of-the-art food processing unit in Narsapura, Karnataka, and its export markets.
“The Indian food processing industry is witnessing many transactions in the branded and private label space, and this transaction signifies the growing appetite among large groups in expanding their presence in this high-growth segment,” said Sreeraj Krishnamoorthy, vice president of Singhi Advisors, the global investment bank which advised the Koeleman Group on the deal.
Gijs de Rooij, director of Koeleman Beheer and Koeleman India, said he had a “great experience” dealing with OfBusiness and Singhi Advisors.
“From a European perspective, the perceived risk of selling a company in India is high, and there are many administrative differences between The Netherlands and India,” he said in an email response to ET’s query.
OfBusiness did not respond to a request for a comment.
Bengaluru-based Koeleman India is a subsidiary of Dutch corporation Koeleman Foods International B.V. It processes fruits and vegetables like gherkins, olives, jalapeno, bell pepper and baby corn. It does private labelling of these products for large food companies in the US, Europe and Australia.The divestiture is part of the Koeleman Group’s move to streamline its focus on its core activities. The deal is estimated to be worth around $10 million.
While there is already significant demand for these products in the West, OfBusiness is betting on the growing demand for these foods in India as people’s dietary habits change.
OfBusiness had started as a platform to sell industrial goods. It has raised investments from Softbank, Tiger Global, Norwest, Zodius and Matrix Partners. The company also has a presence in trading of food and agricultural commodities.
India’s food sector has seen a lot of traction recently, with several major companies expanding their product segments and new players entering the space.
Bengaluru-based Wipro group recently acquired Kerala-based ready-to-mix and spice company Nirapara. Dabur acquired Badshah Masala, making its entry into the spice and masala segment. Bengaluru-based MTR foods acquired Eastern condiments and ITC acquired Kolkata-based Sunrise Foods.
