Bharti Enterprises exits Del Monte India as Agro Tech Foods takes over

Fair trade regulator CCI on Tuesday approved private equity firm Samara Capital-backed Agro Tech Foods' proposal to acquire Indian operations of Del Monte Foods from billionaire Sunil Bharti Mittal's Bharti Enterprises.

Agro Tech Foods Ltd (ATFL), a listed company, engaged in the business of manufacturing, marketing, and selling a wide range of food products and edible oils.

"The proposed combination involves the acquisition of 100% shareholding in Del Monte Foods Pvt Ltd (DMFPL) from its existing shareholders, ie, Bharti Enterprises Ltd (BEL), Bharti Units (collectively Bharti), and DMPL India by ATFL," CCI said in a release on Tuesday.

Pursuant to this acquisition, DMFPL would become a wholly owned subsidiary of ATFL, it added.

"Commission approves the proposed combination involving, inter alia, Agro Tech Foods Ltd, Bharti Enterprises Ltd, DMPL India Ltd and Del Monte Foods Pvt Ltd," the Competition Commission of India (CCI) said.

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Bharti Units comprise Bharti (SBM) Holdings, Bharti (RBM) Holdings, Bharti (RM) Holdings, and the Bharti (Satya) Trustees Pvt Ltd (on behalf of Bharti Satya Family Trust).

"Issuance of 20.95% and 14.39% equity shares in ATFL to Bharti and DMPL India, respectively by way of preferential allotment by ATFL, in discharge of its consideration for ATFL's 100% acquisition in DMFPL," the regulator said.

Billionaire Sunil Bharti Mittal's Bharti Enterprises is involved in rendering management consultancy services within the Bharti Group itself.

DMPL India is an investment holding company that has controlling interests in branded food and beverage companies. Apart from its investment in DMFPL, DMPL India has no business presence in India.

DMPFL is engaged in the manufacture and sale of packaged foods such as snacks, "ready to eat" foods, sauces, spreads and dips, edible oils, and pasta in India.

In November last year, Agro Tech Foods announced acquiring Del Monte Foods--a joint venture between Bharti Enterprises and Del Monte Pacific--in a share-swap deal valuing the joint venture at Rs 1,300 crore.

Pursuant to completion of the deal, Del Monte will become a wholly owned subsidiary of Agro Tech, while Bharti Enterprises will become the second largest shareholder in Agro Tech Foods, with nearly 21%.

In addition, Agro Tech Foods, through Del Monte Foods, will acquire an exclusive, perpetual license for the Del Monte brand in India.

Bharti's journey in the food sector began in 2004 with the establishment of FieldFresh Foods, a JV with global investment firm E L Rothschild, initially focused on producing and exporting fresh fruits and vegetables.

In 2007, Singapore-based Del Monte Pacific acquired a 40.1% stake in FieldFresh for Rs 20.8 million. In 2021, the company was rebranded as Del Monte Foods Pvt Ltd.