March 29, 2005

Avesthagen buys Good Earth Foods


Avesthagen, Bangalore-based integrated biotech company, has acquired Good Earth Foods to form a wholly owned subsidiary -- Avesta Good Earth Foods.
Good Earth Foods specialises in breakfast cereals and biscuits and is owned by film actress Waheeda Rehman and her partner Ashraff Sattar. Both the companies declined to disclose the financial details.
The acqusition is part of Avesthagen's long term strategy to launch its branded nutraceuticals as functional foods targeting the burgeoning health foods market in India, said Dr Villo Morawala Patell, founder and CEO, Avesthagen.
"The acqusition also marks the foray of Avesthagen into FMCG segment and is my belief that an integrated biotech company such as ours should take the challenge of marketing our own products", she added.
As a result of the acqusition, Avesta Good Earth Foods will enter the market with cereals, energy bars, slim bars, biscuits under the health foods segment.
Good Earth Foods started as small scale unit in 1989 mainly concentrated in making cereals and biscuits from its factory in Bangalore and has marketing presence in major markets in India and is expected to give Avesthagen the much required boost to enter the Indian market.