ITC acquiring Parle's unit-Sources

It is speculated that ITC Foods is in an advanced stage of discussions with Parle for acquiring the latter's confectionery arm. However, when contacted, both ITC divisional chief executive (foods) Ravi Naware and Parle chairman Ramesh Chauhan denied that a deal is brewing.

"We do not comment on market speculation," Naware said, while pointing out that the company is continuously on the lookout for acquisitions in the foods business."If we get a good opportunity, we will buy." Chauhan said he has not been approached by anybody, including ITC. "Even if there is a proposal, I will not sell," Chauhan said.

ITC has been looking for buyouts in the foods space for the last couple of months. Since ITC entered the foods business in 2001, it has only acquired one brand, 'Mint-O', which is one of the leaders in its segment.

The foods business accounts for a major portion of the over Rs 1,800 crore revenue of ITC's new FMCG businesses. Its brands include 'Kitchens of India', 'Sunfeast', 'Candyman', 'Bingo' and 'Aashirvaad'.

Read more in The Times of India article.

ABF to buy UK's Indian cuisine brand Patak's

Associated British Foods (ABF), the UK-based food and retail group which owns brands like Twinings tea and Ovaltine beverages, today announced that it has reached an agreement to buy Indian cuisine brand Patak's from the founding Pathak family.

In a press statement, ABF said that the gross assets of the business being acquired were £40 million as of 2 October 2005. Unaudited revenue for the year to 30 September 2006 was £66million. The deal is expected to be completed by the end of August this year.

The business comprises the Patak’s brand and assets in all countries except India. Patak's, which manufactures and markets Indian cooking sauces, curry pastes, chutneys and other meal accompaniments was set up by the Pathak family in England in 1957.

Patak’s is a well established brand in Indian cuisine in England and also has a wide international presence. Tobacco to hotel company ITC too was said to be in the running for Patak's.

Read more in The Business Standar article.

ITC Infotech could go public

ITC Infotech, an IT services company and fully-owned subsidiary of ITC, is planning to go public. Although no date has been finalised as to when the company is planning to hit the capital market, Y C Deveshwar, chairman, ITC said the company may opt for the bourses `at some point of time'.

ITC Infotech is a $64 million company with a headcount of over 4,200 employees. The tier-II firm competes with the likes of the global service providers like HP, IBM and Accenture and also tier-one Indian players for enterprise system integration solutions, infrastructure and testing services projects. Some of its clients include British American Tobacco, Abbey National Bank, Finnair, DHL, PTC and Unilever. Around five per cent of the company’s revenues come from ITC.

Read more in The Business Standard article.

ITC to bid for spice king "Patak’s"

ITC Foods is likely to put in a formal bid for Britain’s popular pickles and Indian curries brand, Patak’s. Heinz, which already has a partnership with Patak’s, could also be interested in the company, said sources.

The £200-million price tag, however, could be a sticking point as it is being seems a tad on the higher side for
potential partners or buyers.

According to information with ET, the tobacco major has been approached by Patak’s investment banker NM Rothschild with a proposal.A decision will be taken once the company has studied the details,” said people close to ITC.