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Nestle SA, the largest food group globally, is among the final bidders in the running to acquire Mumbai-based Capital Foods Pvt, as it aims to boost its presence in the rapidly growing Indian economy, according to people familiar with the matter. The Swiss company has been discussing potential deal terms with Capital Foods, which produces spicy noodles and fusion chutneys under the Ching’s Secret brand.
The Indian firm also sells cooking pastes and masala mixes under the Smith & Jones brand. Although discussions are said to be at an advanced stage, other interested parties have also expressed an interest in acquiring Capital Foods, with no certainty that Nestle will come out on top.
The Indian unit of Nestle has seen its shares rise by 10% in Mumbai over the past year, giving the firm a market value of approximately $22.3bn. Nestle opened its first manufacturing plant in India in 1961, selling a range of products including cereals and yogurt. Capital Foods’ investors include General Atlantic, which bought a stake in the firm in 2018. The Indian packaged foods market is expected to increase by over $100bn by 2024, according to Technavio, with several global companies eyeing expansion in the country.