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Saraf Foods raises funds worth Rs 30 cr from investors, including IFU
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Tuesday, 27 February, 2018, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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Saraf Foods Ltd has raised its second round of funding worth Rs 30 crore from a consortium comprising existing investors - the Saraf family, Pedoria and DSG Consumer Partners. An additional stake has been picked up by Danish Investment Fund, IFU.
Apart from this infusion of capital, it also involves a loan from the State Bank of India (SBI) and subsidy from the ministry of food processing industries (MoFPI) under the cold chain scheme. The development coincided with the silver jubilee celebrations of the Vadodara-based freeze drying and food processing company.
The fund infusion will aid backward integration in individual quick freezing (IQF), add capacity to freeze drying and diversify into air drying. With a fortified infrastructure in place, Saraf Foods aims to garner over 200 per cent growth in revenues to Rs 100 crore by 2020 from Rs 30 crore in 2017.
“We continue to evolve despite specialising in freeze drying for 25 years now. We are happy that our investors have continued to show faith in us. We are glad to have Danish Investment Fund, IFU on board too. We hope all of us together can take Saraf Foods to great heights. The funds raised will bolster our upcoming project. The new unit will commence operations by the end of June 2018,” said Suresh Saraf, chairman and managing director, Saraf Foods Ltd.
The rest of the investors were a part of Saraf’s first funding round in 2013, when it picked a total investment of Rs 10 crore from DSG Consumer Partners, also involving a term loan from SBI.
“IFU, through its agribusiness fund, is very pleased to partner with an experienced company such as Saraf Foods. The company uses state-of-the-art technology for food processing, and we look forward to being a part of their journey to emerge as an even stronger player in the industry,” said Deepa Hingorani, vice-president, South Asia, IFU.
Rohit Goyal, senior investment manager, IFU, will also join Saraf Foods as a member of the board.
Danish Investment Fund, IFU co-invests with companies as well as developers wishing to supply technology to, develop or operate businesses within the entire agri-business value chain from farm to fork. It also offers risk capital and advice for agri-business projects in developing countries and emerging markets.
IFU, or the Investment Fund for Developing Countries, has assisted over 900 Danish companies and provides risk capital and professional advice in markets like Asia, Africa, Latin America and parts of Europe.
“The investment is well-deserved. I have full confidence in the team and hope to see them take the company on to the path of the next stage of evolution, scaling up and becoming an innovator in this sector,” said Deepak I Shahdadpuri, managing director, DSG Consumer Partners.
The new manufacturing unit will be located in Vaghodia, Gujarat, and will be a crucial infrastructure to meet the anticipated rise in demand.
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