Saraf Foods Ltd.has raised its second round of funding worth Rs. 30 crore from a consortium comprising of existing investors -Saraf family, PEDORIA and DSG Consumer Partners - and an additional stake has been picked up by Danish Investment Fund, IFU. Apart from this infusion of capital, it also involves loan from SBI and subsidy from Ministry of Food Processing Industries under cold chain scheme.
The development comes at a time when the Vadodara-based freezedrying specialist and food processing company will mark its Silver Jubilee celebrations on February 24.
The fund infusion will aid backward integration in Individual Quick Freezing, add capacity to freeze drying and diversify into air drying. With a fortified infrastructure in place, Saraf Foods aims to garner over 200% growth in revenues to Rs. 100 crore by 2020 from Rs. 30 crore in 2017.
“We continue to evolve despite specializing in Freeze Drying for 25 years now. We are happy that our investors have continued to show faith in us. We are glad to have Danish Investment Fund, IFUon board too. We hope all of us together can take Saraf Foods Ltd. to great heights. The funds raised will bolster our upcoming project. The new unit will commence operationsfrom end of June, 2018,” said Suresh Saraf, Chairman & MD, Saraf Foods Limited.
Other than Danish Investment Fund, IFU; the rest of the investors were also part of Saraf’s first funding round in2013when it picked a total investment of Rs.10crore from DSG Consumer Partners, alsoinvolving a term loan from the State Bank of India.
“IFU, through its Agribusiness Fund, is very pleased to partner with an experienced company such as Saraf Foods. The Company uses state of the art technology for food processing and we look forward to being a part of their journey to emerge as an even stronger player in the industry”, said Deepa Hingorani, Vice President (South Asia), IFU.
Rohit Goyal, Senior Investment Manager at IFU will also joinas a member of the board at Saraf Foods Ltd.
Danish Investment Fund, IFU co-invests with companies as well as developers wishing to supply technology to, develop or operate businesses within the entire agribusiness value chain from farm to fork. It also offers risk capital and advice for agribusiness projects in developing countries and emerging markets.
IFU or the Investment Fund for Developing Countries has assisted over nearly 900 Danish companies and provides risk capital and professional advice in markets like Asia, Africa, Latin America and parts of Europe.
“The investment is well-deserved. I have full confidence in the team and hope to see them take the company on to the path of the next stage of evolution, scaling up and becoming an innovator in this sector,” said Deepak I. Shahdadpuri, Managing Director, DSG Consumer Partners.
The new manufacturing unit will be located inVaghodia, Gujarat and will be a crucial infrastructure to meet anticipated rise in demand.