620% Jump In 3 Yrs: FMCG Stock Acquiring 52.94% Stake in Melt ‘N’ Mellow Foods For Rs. 9 Cr

Krishival Foods Ltd. was established in 2014 and is engaged in the processing of nuts and other dry fruits. The company has announced an extensive effort to broaden its line of products in order to cater to a broader spectrum of clientele. Krishival Foods Limited considered and approved a strategic investment in Melt 'N'Mellow Foods Private Limited by subscribing 52.94% of the company's total paid-up share capital in the form of equity shares. This meeting took place on Monday, September 16, 2024. By September 30, 2024, the firm will subscribe 52.94% of the total paid-up share capital for Rs. 9 crores; as a result, Melt 'N 'Mellow Foods Private Limited will become a subsidiary of Krishival Foods.

The acquisition shall diversify the business of Krishival Foods from nuts, dry fruits to ice cream, milk products, bakery products. Both being food segments, sales and distribution channels can be leveraged for scaling of all segments and the acquisition does not fall within related party transactions. The promoter/ promoter group have no interest in the investee company. However, the promoter shall be acquiring 41.17% equity share capital of Melt 'N'Mellow Foods Private Ltd as per a stock exchange filing.

In 2019, Melt 'N' Mellow Foods Private Limited was established in India with registration under the Companies Act 2013, specialising in the sales of ice cream, milk products, and bakery products. By offering high-quality ice cream to a diverse clientele, the firm has built its reputation and solid brand name in the marketplace. The company's merchandise is available in 20,000 stores throughout Maharashtra and North Karnataka. Sales for Melt 'N' Mellow were Rs. 28.38 cr in FY 23 and Rs. 37.28 cr in FY 24.

Abhishek Puranik, Sandeep Shelke and Amol Palshikar , co-founders of Melt 'N' Mellow stated, "We are excited about the journey of Melt 'N' Mellow with Krishival. We are confident of Melt 'N' Mellow emerging as numero uno brand in ice cream in India in coming years."

Aparna Bangar, CMD, Krishival Foods Ltd, stated, "This strategic acquisition is a significant building block for value creation for Krishival shareholders through profitable sustainable growth over the long term. This acquisition aligns with Krishival's broad vision to emerge as overarching FMCG player in aspirational food products and diversify its business operations aligning with this vision."

Krishival Foods is branching out into the ice cream, dairy, and pastry industries, building on its well-established foundation in nuts and dry fruits. These business sectors provide opportunities for growth and distribution synergies, enabling the organisation to maximise its current resources in both business lines. Krishival's portfolio now includes ice cream and bakery products, creating the potential for cross-selling and bolstering the company's position in the rapidly evolving food industry.

One of Dalal Street's multibagger stocks is Krishival Foods, whose share price has increased by 620.12% during the last three years. Over the past year, the stock has gone up by 13.51%. The stock's 52-week low is Rs 213.00, and its 52-week high is Rs 317.45. Its last trading price was Rs 302.45.