Cavincare buys MAA for Rs 30 cr
The Chennai based FMCG major, has acquired MAA fruits which makes and markets fruit drinks under the MAA brand, reports GC Shekhar.business Updated: Feb 27, 2008 21:26 IST
CavinKare, the Chennai based FMCG major, has acquired MAA fruits which makes and markets fruit drinks under the MAA brand.
CavinKare (Rs 500 crore sales in 07-08), paid Rs 30 crore for the Salem-based MAA, the No 4 brand in South India in the fruit drinks segment with a market share of five per cent. MAA, which will be a fully owned subsidiary, is expected to reach a turnover of Rs.40 crore in 2007-08, a growth of 55 per cent.
“We found the acquisition route a better option than developing our own brand in this segment, which is growing at 32%,” observed CK Ranganathan CMD of CavinKare. The aim now would be to expand MAA beyond the South for which the present annual capacity of 1.20 crore litres had to be doubled he said.
While MAA had quality control, price and distribution in place the products required a marketing push and also new packaging, Ranganathan said. There was no move to rename the brand. The immediate step is to add orange to the present offering of mango, pineapple, apple and pink guava he said.