McCormick & Co, Inc, of the US, a leading spice maker, will invest close to Rs 520 crore (about $ 115 million) in a joint venture with Kohinoor Foods Ltd, a leading marketer of branded Basmati rice and other food products.
McCormick's investment, through a Singapore-based subsidiary, will include picking up an 85 per cent stake in the new joint venture Kohinoor Speciality Foods India Pvt Ltd. Kohinoor will hold the balance 15 per cent. The proposal would however be subject to shareholders' and regulatory approvals. The board on Thursday approved the proposal to finalise the business transfer agreement and other transaction documents, the company said in a statement to the BSE.
The employees of Kohinoor Foods related to the distribution, marketing and supply of rice in India shall also be transferred to Kohinoor Speciality Foods, said the company statement.