Mumbai, April 8: Hindustan Lever Limited (HLL) today announced the acquisition of the cooked shrimp and pasteurised crabmeat business of the Amalgam group on a going concern basis. The business was already on wet lease with HLL since July 2000. It has contributed about Rs 200 crore to the company’s exports turnover in 2002. The acquisition is effective from January 1, 2003.
The news failed to attract investors to the HLL counter on Dalal Street today. The stock fell 3.24 per cent to Rs 147.80 on huge combined volumes of more than 16 lakh shares.
The acquisition of Amalgam business covers four processing units at Aroor and Kuthiathode (in Kerala), Pamarru (in Andhra Pradesh) and Rabale (in Maharashtra) with about 150 employees. These state-of-the-art factories have the approval of US and EU regulatory authorities. Amalgam’s established brands are Ocean Diamond, Ocean Excellence and Shogun.
HLL said value-added marine products are among the company’s chosen exports businesses, along with home, personal care products and tea.
The marine products export has been growing over the last few years and HLL has been winning MPEDA Awards for being the highest exporter of marine products from India.
Meanwhile, HLL has been phasing out unviable traded marine exports and focussing on moving up the value chain to ready-to-eat finished products. Cooked shrimps and pasteurised crabmeat, the key products of the four acquired units, are logical extensions of HLL portfolio.