Singaporean Food Firm Asmara Hints On Getting Acquired By Large MNC

Asmara, a Singaporean manufacturer of functional foods, has admitted that three companies are interested in buying it, including an MNC.

-KH News Desk (cbedit@imaws.org)

Singapore based Asmara, the company behind goods like Health Tonics, Probiotic-Mood Snacks, Sima Tea, functional drinks, ginseng, and para-probiotics is buzzing around for a possible acquisition. If the talks are to be believed, a large MNC has already initiated talks with the company. Founded in 2019 by Ramesh Krish Kumar and Tho Pin Da with a beginning capital of just US$3,038, Asmara received its first angel investment last year.

“An overseas MNC is planning to acquire Asmara fully. In fact, three entities have approached us, and we are in discussions with all three of them. We have more inquiries about others potentially acquiring [the firm] as well,” said founder, CEO, and food scientist Ramesh Krish Kumar in his Linkedin post last week.

He stated that the company was only taking into consideration bids from the three organizations as of the time of writing. The firm’s stakeholders are still undecided on whether to move through with the prospective takeover agreement, although Kumar pointed out in an open manner that the offer “may be too good to miss as well” reported Food navigator-asia.com.

“Asmara has made zero decisions on whether to proceed or to keep our baby. It is a fantastic opportunity, but we are hesitant to give up our brainchild. Due to various NDA (non-disclosure agreement) and CA (confidential agreement) signed with all three MNCs and SMEs, I cannot share more.”

The company was on the verge of going out of business in 2019, and the COVID-19 pandemic together with a slump in the retail industry only made matters worse. The company saw a decline in sales from physical retail, including cafés, bistros, tourist attractions, and restaurants, when the pandemic began. However, the company saw an increase in sales through online and grocery channels thanks to its immunity and weight management beverages.

Its origins may be traced back to Singapore’s Temasek Polytechnic’s Innovation and Entrepreneurship Department, which aims to revolutionize the country’s health functional food market by creating products that are both diverse and supported by science.

The company actively participates in events, such as the Mind and Mood APAC Interactive Broadcast Event recently, where Kumar discussed the rising popularity of Asian botanicals in dietary supplements, such as saffron and holy basil.