AGRANA Fruit expands into India through acquisition
Following the establishment of AGRANA Fruit India Private Ltd. last September and the acquisition of the facility from Sai Krupa, AGRANA Fruit has now expanded its production activities in Asia to a third territory, in addition to China and South Korea.
AGRANA Fruit now maintains 26 production sites in 20 countries.
The plant is located in western India in the state of Maharashtra, around 50 km south of Pune.
Dairy and beverage applications
AGRANA said the location is close to raw materials such as mangos, strawberries, pomegranates and guavas, as well as to key customers.
The plant has been active in the processing of fruits to pulp, purees, concentrates and juices for the food and beverage industry.
In addition, AGRANA Fruit India will extend the product portfolio for various customer segments in the dairy, ice cream, bakery and food service industry.
Developing niche products
In order to support the business, AGRANA Fruit India has opened an administration office and a research and development laboratory in Pune.
Johannes Kleppers, CEO AGRANA Fruit, said the acquisition gives AGRANA Fruit a foothold in the Indian market.
“Being the world market leader for fruit preparations for the dairy industry, we see excellent opportunities for our products in India due to rising purchasing power and changes in consumption behavior patterns,” Kleppers said.
He added the company’s target is also to develop niche-products adapted to the local taste and markets.
AGRANA Fruit is the world market leader for fruit preparation for the dairy industry, with its preparations in every third yogurt cup sold worldwide.
Solid financial year
AGRANA Group, which contain AGRANA Fruit, has also published its 2016/17 financial results, which showed the fruit and juice segment generated a turnover of €1.15bn ($1.29bn).
Revenue rose from €2.48bn ($2.79bn) in 2015/16 to €2.56bn ($2.88bn) in 2016/17. While EBIDTA grew from €192m ($216m) to €235.2m ($264.5m), operating profit (EBIT) fell from €129m ($145m) to €72.4m ($81.4m).
Profit for the period was €117.9m ($132.6m), up from €80.9m ($91m) the previous year.
AGRANA Group CEO Johann Marihart said in the fruit segment, it was the upturn in the fruit juice concentrate business that led to significant EBIT growth.
Marihart, whose contract has been extended to February 28, 2021, added, “For the 2017/18 financial year, we currently expect both Group revenue and operating profit (EBIT) to show a moderate increase.”