One of the world's biggest bakery product manufacturing company, Grupo Bimbo headquartered in Mexico city has entered into the Indian market with the acquisition of a controlling stake of about 65 per cent in India’s bread and bakery products maker, Harvest Gold.
“This acquisition represents Grupo Bimbo’s entry to the Indian market, strengthening its presence in emerging markets, in line with its vision. The results of this new operation will be included in the EAA (Europe, Asia and Africa) region.” Grupo Bimbo said.
Harvest Gold was founded in 1993 by Adil Hassan, an engineer from IIT Delhi as Harvest Gold Foods. He set up the company’s first manufacturing plant in Rajasthan’s Bhiwadi and the plant started its production in June 1993. Harvest Gold Industries operates a variety of brands under numerous entities such as Ready Roti India, Food Magic India, Rhodanthe Foods and Mindscape One Marketing.
The bread industry contributes for 45 per cent of the total market and over the last three years it grew at a compound annual growth rate (CAGR) of 9 per cent and the industry is expected to grow at around 10 per cent over the next five years to around Rs 5,300 crore in FY20 according to a research report by ValueNotes Database.
“Entry of the mid size regional players is consolidating the industry towards a more organised structure. Brown and nutritional bread are fast growing segments while white bread is the largest at 75%. Though urban market accounts for 65% of the demand, rural market is growing faster,” the report said.
Grupo Bimbo is present in twenty three countries in America, Asia and Europe. With over 13,000 products and over 100 brands, the company is looking to expand in the growing Indian market now. As India offers a huge opportunity, the Mexican group wants to expand its base in Asia and have decided to grow inorganically here. The group has grown both organically and inorganically in newer markets across the globe.
June 07, 2017