McCormick to leverage Kohinoor brand in spices
The Indian arm of spices and flavouring items company McCormick, which completed acquisition of Kohinoor Specialty Foods last month, is preparing to expand the latter brand in the spices market.
The American firm has revamped its manufacturing facility at Bahalgarh, Haryana, for this, said Amit Mehta, managing director.
McCormick entered into a joint venture (JV) agreement with Kohinoor in 2011 after acquiring 85 per cent stake for ~760 crore ($115 million). The JV was earlier intended to source, process and package branded basmati rice through Kohinoor’s existing facilities, though disputes between the management of McCormick and the local owners of Kohinoor had upset this.
“We have invested ~20 crore to align our manufacturing unit and in research and development. We plan to launch our first range of spices under the Kohinoor brand by the December quarter,” said Mehta. The plan is to introduce liquid condiments and speciality flavouring and seasoning, according to regional needs.
McCormick’s move comes when the branded rice market in India is growing at 12 per cent a year. Of the ~3 lakh crore pulses and cereals market in the country, only eight per cent or ~24,800 crore is branded.
“MCCORMICK HAS REVAMPED ITS MANUFACTURING FACILITY AT BAHALGARH, HARYANA, FOR EXPANDING OUR BRAND”