Mexican bakery giant Grupo Bimbo is in talks to acquire a majority stake in Everfoods, the company that owns the popular Modern Foods brand, The Economic Times has reported.
Bimbo is one of the largest baking companies in the world and has a presence in over 30 countries and owns more than 100 brands. Bimbo entered the Indian market in 2017 through its acquisition of Harvest Gold.
"Once the deal materialises, the $15-billion Grupo Bimbo will use this platform to strengthen its presence in India as Modern Foods has a wide distribution network in the country. Modern’s bread and bakery products are manufactured and marketed nationally through a network of more than 40 plants and 80,000 outlets. With revenue of Rs 400 crore, Modern Bread holds about 35-40% market share in India’s fragmented bread market," The Economic Times reported.
The Economic Times explained India's bakery industry "which includes bread, biscuits, and cakes and pastries, is valued at $8 billion".
Modern Foods was a pioneer in the bakery industry in India. It was established by the Central government in 1965 as Modern Bakeries and was rebranded as Modern Foods in 1982. Modern Foods was privatised in 2000, with its sale to Hindustan Unilever. In 2016, Hindustan Unilever sold it to Everstone Capital.
