AAK has acquired 51% of the shares of Kamani Oil Industries, a speciality and semi-speciality oils and fats companies in India. The company had revenues of approximately SEK1,000 million last year, with an annual volume of 100,000 MT.
The remaining 49% of the company’s shares will continue to be owned by the Chawla family and Prakash Chawla will continue as Chief Executive Officer. There is, in addition, a put/call option under which AAK could acquire the remaining 49% of the company within the next 3–7 years.
“A growing middle class, a rapid urbanization and a rising per capita income, obviously makes India a very interesting growth market for AAK and we very much look forward to start working together with the Chawla family”, said Torben Friis Lange, President AAK Asia. “This acquisition will reinforce AAK’s speciality oils and fats strategy and offer a strong foothold in India. Kamani has very well-developed relations with both global and local customers. Together, we will continue to develop customer relations as well as the product portfolio of speciality and semi-speciality products.”
Kamani operates out of a production plant in Khopoli, which is situated 70 km southeast of Mumbai where the company’s head office is located.
“It’s a great moment for all of us here in India to become part of a much bigger family,” said Prakash Chawla, Kamani’s CEO. “AAK is one of the leading speciality oils and fats manufacturing companies in the world. This will significantly enhance the capabilities in the Indian market and we very much look forward to this partnership.”
Arne Frank, President and CEO, AAK Group, stated that the acquisition is an integral part of AAK’s company program AAKtion and that it will strengthen AAK’s presence in another fast-growing economy.
“With a great focus on technical expertise and customer co-development, Kamani’s customer and market approach is very similar to AAK’s,” Frank continued. “The acquisition will serve as a platform for increased sales of speciality and semi-speciality products within Food Ingredients and Chocolate & Confectionery Fats.”
The transaction is expected to be completed on October 1, 2015. The acquisition is expected to start contributing to AAK’s operating profit during the first half of 2016.