According to persons familiar with the situation, Nestle SA, the world’s largest food business, is among the final bidders bidding to purchase India’s Capital Foods Ltd. as it aims to expand its foothold in the fast-growing country.
According to the sources, who asked not to be named because the information is confidential, the Swiss business has been negotiating terms of a prospective transaction with Mumbai-based Capital Foods. According to the sources, any sale would likely be worth more than $1 billion to the Indian corporation.
Capital Foods makes the Ching’s Secret brand of spicy noodles and “desi Chinese”-style fusion chutneys.Smith & Jones culinary pastes and masala mixtures are also available.
Although conversations on a prospective purchase are ongoing, many other bidders have indicated interest in purchasing Capital Foods, and it is not guaranteed that Nestle will be the winner, according to the individuals.
Nestle’s listed Indian unit’s shares have increased 10% in Mumbai trading over the last year, giving it a market value of around $22.3 billion. In 1961, the company established its first production plant in India, where it now distributes everything from yoghurt to cereals.
General Atlantic, which purchased a stake in Capital Foods in 2018, is one of the company’s investors.
A Nestle India official wouldn’t say anything, and a Capital Foods representative didn’t answer questions.
