Nilon's Enterprises, an Indian-based packaged food manufacturer, is looking at options to sell up to 49% to a strategic investor.
Established in 1962, Nilon's Enterprises produces pickles, papads, sauces, vermicelli, macaroni, tomato ketchup and jams.
The company currently operates manufacturing plants in Maharashtra and Assam, and it plans to further expand in the northern and southern parts of the country.
It has a presence in countries such as France, Japan, Dubai, Singapore, Malaysia, South Africa, Australia and New Zealand.
The sale will provide an exit option to London-based entrepreneur Kirit Pathak, who owns a 26% to 50% share in various entities of Nilon's, reported The Economic Times citing sources familiar with the matter.
Kirit Pathak, the founder of curry pastes and spices brand Patak's, sold the Patak's brand to UK-based Associated British Foods in a £200m deal in 2007.
With this latest development, the promoters of Nilon's are seeking an investor who can take the company to the next level of growth.
Nilon's has hired investment bank Avendus Capital to help it find a potential investor.
KPMG India private equity, transactions and restructuring practice head Vikram Hosangady was quoted by the news agency as saying, "India remains a very strong consumption story (despite) the recent slowdown.
"The rural market continues to grow and with the good monsoons, will be a driver for most food and FMCG (fast-moving consumer goods) companies."
Over the past few years, financial and strategic investors have been looking at opportunities to foray into the Indian packaged food segment.
Last week, snack maker Bikaji Foods was reportedly in talks with several private equity groups over a possible minority stake sale in a bid to raise INR1.5bn.
Earlier this year, Balaji Wafers was said to be in talks to sell a majority stake to food firms Pepsico, Mondelez, ITC and Britannia.
