Orkla acquires MTR Foods in India
Orkla has entered into an agreement to acquire MTR Foods in Bangalore, India. MTR Foods is an Indian manufacturer of processed vegetarian food products, such as ready meals, ready mixes, spices and condiments.
MTR Foods' domestic market is Southern India, and the company holds leading positions in its categories. Its factory is located in Bangalore. In 2006, MTR Foods' operating revenues totalled approximately NOK 230 million and the workforce was equivalent to 1,079 man-years. The Indian retail market is undergoing a period of rapid change and strong growth. The company's major shareholders are: The Maiya family, JPMorgan Global Packaged Foods Ltd., Indocean Packaged Foods Ltd. and Magnus Capital Corporation Ltd.
"As a result of this acquisition we will be able to assess the Indian market as a possible future growth platform for Orkla's Branded Consumer Goods business at close quarters. MTR Foods is located in an interesting, growing market. We expect to spend some time learning and assessing the situation before any final decisions are made concerning further strategic investments in India," says Executive Vice President Torkild Nordberg, who is responsible for Orkla's Branded Consumer Goods business.
For one of the shareholders, the agreement to sell shares in MTR Foods is dependent on the approval of the Indian authorities.
Orkla's Branded Consumer Goods business consists of Orkla Foods and Orkla Brands. The Nordic region and the Baltic States are its domestic market. Orkla's Branded Consumer Goods business also has strong market positions in Poland, the Czech Republic, Austria, Romania and Russia. In 2005, annual operating revenues totalled NOK 19,737 million and the workforce was equivalent to 13,466 man-years.
The Branded Consumer Goods business is not currently engaged in direct marketing activities in Asia. Orkla is otherwise well represented in the region through Sapa, Borregaard, Elkem and its minority interest in Jotun.
For further information, please contact: Håkon Mageli, Director, Orkla Foods at + 47 928 45 828