Elitecon International has made a significant move to strengthen its position in the FMCG sector by acquiring majority stakes in two agro companies. The acquisitions, totaling Rs 181.25 crores, are set to expand Elitecon's presence in the agro products and allied activities segment.

Key Acquisition Details

Elitecon has acquired controlling stakes in two companies:

1. Landsmill Agro Private Limited:

   • 55% stake acquired for Rs 52.85 crores
   • Turnover of Rs 1,394.80 crores

2. Sunbridge Agro Private Limited:

   • 51.65% stake acquired for Rs 128.40 crores
   • Turnover of Rs 1,443.04 crores

The acquisitions were made through cash considerations, as detailed in the company's filing to the stock exchanges.

Strategic Rationale

According to the company's disclosure, the primary objective of these acquisitions is to expand and strengthen Elitecon's FMCG business vertical. By consolidating its presence through these acquisitions, Elitecon aims to:

• Enhance operational scale
• Increase product depth
• Diversify revenue streams

Acquisition Terms

Elitecon has outlined its plans to acquire 100% equity stakes in both entities within a 12-month period. The specifics of the transactions are as follows:

• Landsmill Agro: Acquired 51,48,000 equity shares at Rs 102.67 per share
• Sunbridge Agro: Acquired 98,77,138 equity shares at Rs 130 per share

Company Backgrounds

Landsmill Agro Private Limited

• Incorporated on October 3, 2019
• Paid-up share capital of Rs 9.36 crores
• Turnover growth:

Sunbridge Agro Private Limited

• Incorporated on February 7, 2022
• Paid-up share capital of Rs 19.12 crores
• Turnover growth:

Both companies are engaged in the business of agro products and allied activities, aligning with Elitecon's existing operations in the FMCG sector.

Market Impact

These strategic acquisitions are expected to significantly boost Elitecon International's market presence in the agro-based FMCG segment. The combined turnover of the acquired entities, totaling over Rs 2,800 crores, represents a substantial addition to Elitecon's business operations.

As Elitecon International moves forward with its expansion plans, investors and market watchers will be keen to observe how these acquisitions translate into growth and value creation for the company in the competitive FMCG landscape.

Elitecon International , a prominent player in the FMCG sector, has announced ambitious plans to raise ₹300 crore through a Qualified Institutional Placement (QIP). The company aims to use these funds for the strategic acquisition of two agro companies, Sunbridge Agro and Landsmill Agro, in a move set to significantly expand its market presence and operational capacity.

Acquisition Targets

Sunbridge Agro

Sunbridge Agro brings to the table a substantial operational capacity with its 800 MT per day edible oil refinery and a 9,250 MT storage capacity. The company's financial performance has been robust, with reported net sales of ₹1,443.00 crore and a profit of ₹34.00 crore in FY25. Looking ahead, Sunbridge Agro projects an optimistic outlook with anticipated sales of ₹2,520.00 crore and a profit of ₹73.00 crore for FY26.

Landsmill Agro

The second acquisition target, Landsmill Agro, operates a 235 MT per day facility in Mathura. The company reported a strong financial performance with revenue of ₹1,395.00 crore and a profit of ₹25.00 crore in FY25. For FY26, Landsmill Agro projects revenue of ₹1,800.00 crore and a profit of ₹44.00 crore. Notably, Landsmill boasts an extensive distribution network with over 500 distributors across India and supplies to major FMCG companies.

Elitecon's Financial Performance

Elitecon International has demonstrated solid financial results, reporting consolidated net sales of ₹549.00 crore and a profit of ₹70.00 crore in FY25. The company's performance in Q1 FY26 has been particularly impressive, with sales reaching ₹525.00 crore and profit soaring to ₹72.00 crore.

Strategic Vision

Vipin Sharma, Managing Director of Elitecon International, emphasized the strategic importance of these acquisitions. He stated that the move would significantly strengthen the company's FMCG portfolio and is expected to create long-term value for shareholders.

Financial Highlights

This strategic move by Elitecon International marks a significant step in its growth trajectory. The acquisitions are poised to enhance the company's production capabilities, expand its product portfolio, and strengthen its market position in the competitive FMCG sector.