Danone Eyes Majority Stake in Indian Yogurt Brand Epigamia
Source: dairynews.today
Danone plans to increase its stake in Epigamia to 60% by acquiring shares from Verlinvest, amidst rising interest in health and wellness brands.
French food giant Danone is reportedly looking to double its stake to 60% in Indian Greek yogurt brand, Epigamia. This move would involve acquiring shares from Belgian private equity firm Verlinvest, known for its backing by the family behind AB-InBev, the world's largest brewer. Currently, both Verlinvest and Danone Manifesto Ventures hold approximately 30% each in Epigamia.
The negotiations, which are still in exploratory stages, could lead to Verlinvest either fully exiting or partially reducing its stake, contingent upon valuation agreements. Amidst increasing consumer and investor interest in health-focused goods, rival bidders might challenge Danone for Verlinvest’s stake, potentially escalating a bidding war. Earlier, Epigamia, which supplies 24 varieties of dairy products, had solicited interest from major consumer brands like Dabur and ITC via Investec with no deal materializing due to valuation discrepancies.
Epigamia, founded in 2013, faces competition from established dairy names such as Nestle, Mother Dairy, and Amul. The recent passing of founder Rohan Mirchandani has left cofounder Rahul Jain at the helm as CEO. Presently, Epigamia is valued at Rs 1,250 crore, following robust investment rounds including Rs 182-crore from Danone Manifesto Ventures along with contributions from high-profile backers like Deepika Padukone's KA Enterprises. Given its strategic urban market presence and venture into zero-sugar protein milkshakes, Epigamia exemplifies the growth potential in health and wellness product sectors.
The negotiations, which are still in exploratory stages, could lead to Verlinvest either fully exiting or partially reducing its stake, contingent upon valuation agreements. Amidst increasing consumer and investor interest in health-focused goods, rival bidders might challenge Danone for Verlinvest’s stake, potentially escalating a bidding war. Earlier, Epigamia, which supplies 24 varieties of dairy products, had solicited interest from major consumer brands like Dabur and ITC via Investec with no deal materializing due to valuation discrepancies.
Epigamia, founded in 2013, faces competition from established dairy names such as Nestle, Mother Dairy, and Amul. The recent passing of founder Rohan Mirchandani has left cofounder Rahul Jain at the helm as CEO. Presently, Epigamia is valued at Rs 1,250 crore, following robust investment rounds including Rs 182-crore from Danone Manifesto Ventures along with contributions from high-profile backers like Deepika Padukone's KA Enterprises. Given its strategic urban market presence and venture into zero-sugar protein milkshakes, Epigamia exemplifies the growth potential in health and wellness product sectors.
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