Disney branded food products will soon make an entry in India in association with eastern India’s food and beverage major Keventer Agro. Sources in Kolkata-based Keventer Agro on Friday said the company has signed an agreement with Disney to be the national licensee for Disney foods.
This will be a new category for the USD 130 billion net worth NYSE listed Walt Disney in India.
“Keventer has signed an agreement with Disney for its food products in India. Disney products are expected to be launched by the end of this calendar year, if everything goes as per plan. Initially, UHT milk, milkshakes and frozen snacks in both veg and non-veg categories will be available,” a company source told PTI, refusing not to be named.
Disney is the largest retail character licensor in the world with USD 52 billion in character merchandising retail sales in products like toys, homes, fashion, publishing, school stationery and food. Disney branded food products are not available in India currently, the sources said.
Keventer is also the franchisee for Parle’s Fruity, Appy and FIZZ in the eastern region. The company is a strong player in the region with milk, ice cream and frozen products. It has been learnt that the company is pumping in Rs 125 crore in its West Bengal manufacturing plant to augment the capacity required for products including the Disney branded ones.
The Keventer Agro board also cleared a proposal for Rs 800 crore IPO to inject fresh capital required to support the expansion plan, retire debt and allow the exit of a PE investor.
“The company board on Friday approved Rs 800 crore initial public offer and the DHRP will be filed with the market regulator SEBI within a day or two,” a source said.
The company was contemplating an IPO since 2019 but did not move ahead due to various hurdles and market conditions. With the stock market showing resilience amid the Covid pandemic, the company spearheaded by Mayank Jalan had hired ICICI Sec, Axis and J M Financial as book runners in March 2021 for the issue.
The IPO will offer an exit route to the existing private equity investor Mandala Capital at almost four times of valuation since it invested in 2017. It holds a 22 per cent stake in Keventer investing Rs 110 crore. Keventer Agro, which is a Rs 1000 crore revenue company, was expecting an enterprise valuation of Rs 2400-2800 crore and will raise around Rs 350 crore in fresh capital in the IPO.
The company proposes to retire debt worth Rs 250 crore besides investing Rs 125 crore in its main Barasat manufacturing plant in West Bengal’s North 24 Parganas district.
Keventer promoters are planning to retain their interest of around 70 per cent in the company.