GRM Overseas divests stake in Foodkraft to Sauce.vc to expand packaged foods market
GRM Overseas Ltd., a leader in the packaged foods industry, has announced a significant move by selling more than 3 percent stake in its subsidiary, GRM Foodkraft Pvt. Ltd. (“Foodkraft”), to Sauce.vc, a consumer-focused venture capital fund. This strategic partnership marks a pivotal step in GRM Overseas Ltd.’s expansion strategy in the domestic India-based foods business.
Strategic Stake Sale to Sauce.vc
Sauce.vc, known for its expertise in nurturing new age brands, acquired the stake for an undisclosed amount. The venture capital fund also acquired an additional 1 percent stake from other shareholders. This investment is a strategic move for both GRM Foodkraft and Sauce.vc, aimed at boosting the growth and diversification of GRM’s product portfolio.
Leadership Comments on the Investment
Atul Garg, Managing Director of GRM Overseas Ltd., expressed his enthusiasm for the partnership with Sauce.vc. He highlighted the potential benefits of Sauce’s experience in creating new age brands and the plan to explore emerging areas for launching new brands in packaged foods. The collaboration aims to deepen Foodkraft’s presence in digital channels, including e-grocers, quick commerce, and e-commerce.
Sauce.vc’s Vision for Foodkraft
Manu Chandra, Founder & Managing Partner of Sauce.vc, commented on the investment, noting Foodkraft’s established strengths in supply chain and distribution. Sauce.vc aims to leverage Foodkraft’s deep know-how and wide distribution reach to launch new food brands in promising categories.
Foodkraft’s Market Presence and Product Portfolio
Foodkraft, under the brand names 10X Zarda King XXL and 10X Shakti, offers a variety of BASMATI RICE, WHEAT FLOUR (Atta), Besan, Daliya, Suji, Poha, and ready-to-cook product kits. The company has a significant presence in online and offline retail as well as the D2C segment, serving more than 1,60,000 Kirana stores through its 52 Distribution Centres (DCs).
Sauce.vc’s Portfolio Strategy
Sauce.vc, founded by Manu Chandra, focuses on partnering with brands in F&B, personal care, lifestyle, etc. They engage closely with founders through a high-engagement model and maintain a focused portfolio strategy. Their previous investments include market disruptors like Mokobara, XYXX, Innovist, Hocco Ice Creams, and The Whole Truth Foods.
Expanding GRM’s Market Share and Brand Recognition
This strategic partnership between GRM Overseas Ltd. and Sauce.vc is set to play a pivotal role in the packaged foods sector. It underscores GRM’s commitment to rapidly scale and diversify its product offerings, enhancing the company’s position in the market and paving the way for future growth and innovation in the industry.