Fund managed by Morgan Stanley PE Asia Invests Rs 152 crore in Manna Foods
January 10, 2018
CHENNAI — January 10, 2018, 15:10 IST
A fund managed by Morgan Stanley Private Equity Asia has invested Rs 152 crore in Southern Health Foods, makers of the Manna Foods brand of natural health food products.
Manna Foods' flagship product, Manna Health Mix is a ready to cook improvisation of 'sathumaavu', a traditional homemade multi-grain mixture of cereals, millets and pulses that is cooked in hot milk. Apart from its flagship product, Manna Foods has a strong suite of health food products including ready to cook millet based infant food, millet grains, soya nuggets, dried fruits, purees and pastes.
"Led by Manna Health Mix, Manna Foods has created a unique health food platform with an array of natural, preservative-free and ethnic food products range. At a time when people are quitting synthetic preparations and switching over to organic and traditional food, Manna Foods is excited about the partnership with Morgan Stanley to write a true success story in Health Foods space in India", said Isak Nazar, company promoter.
Arjun Saigal, co-head of Morgan Stanley Private Equity Asia in India, said, "We are excited to back a fast growing brand such as Manna which has consistently delivered on its customer promise of natural, healthy and high quality products. At a time when India's eating habits and lifestyles are creating health challenges, we believe that Manna's natural foods are well positioned to offer appealing choices to consumers. Additionally, foods based on home-grown grains such as millets are regaining popularity, offering 'superfood'-type nutritional content at an affordable cost. We look forward to driving Manna's next phase of growth."
The proceeds will be used to fund company's expansion in south India as well as provide part exit to existing investors. The company had earlier raised Rs 30 crore from early growth investors led by Fulcrum in 2015.
"Having partnered with Manna in 2015, Fulcrum has been very happy working with the Manna team under the able leadership of Nazar. We have always felt that Manna has a strong brand and the same has reflected in the strong sales growth posted by the company over the last two years. Joining hands with Morgan Stanley will further help strengthen Company's positioning in the FMCG space", said Ethan Khatri, Partner at Fulcrum.
MAPE Advisory Group acted as the sole financial advisor for the transaction.
About Southern Health Foods
Southern Health Foods is a packaged food products company, manufacturing and marketing natural health foods in India. The company has created a health food platform with an array of natural, preservative-free food products. Southern Health Foods offers its products under the brand “Manna”. To learn more about Southern Health Foods, please visit the website: https://www.mannafoods.in/.
About Morgan Stanley Private Equity Asia
Morgan Stanley Private Equity Asia is one of the leading private equity investors in Asia-Pacific, having invested in the region for over 20 years. Private Equity Asia invests primarily in highly structured minority investments and control buyouts in growth-oriented companies at attractive valuations. The experienced investment team is led by senior professionals with extensive industry relationships, in-depth market knowledge and the ability to apply international investment principles within each local context. Private Equity Asia has offices in Hong Kong, Beijing, Shanghai, Seoul, Tokyo, Mumbai and New York, and leverages the brand and unparalleled global network of Morgan Stanley to source investment intelligence and opportunities. Private Equity Asia is part of Morgan Stanley Investment Management. For further information about Morgan Stanley Private Equity Asia, please visit www.morganstanley.com/im/privateequityasia.
About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 600 investment professionals around the world and $482 billion in assets under management or supervision as of December 31, 2017. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations, and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing investment banking, securities, wealth management and investment management services. With offices in more than 42 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals. For more information about Morgan Stanley, please visit www.morganstanley.com.