Modern Food Industries

Modern Food Industries (India) Ltd
Industry Bakers
Founded 1965
Products Bread, cakes, wheat flour
Parent Hindustan Lever Limited
Website www.hul.co.in/brands/foodbrands/modern.aspx

Modern Food Industries (India) Ltd (MFIL) was set up in 1965 as Modern Bakeries (India) Limited situated at Kazhikundram, Taramani (Near Tidel Park). It was set up under the Colombo plan. It got its present name in 1982. MFIL had bread manufacturing units in 13 cities spread across India. MFIL had also marketed fruit juice concentrate under brand name Rasika in Delhi. MFIL also produced aerated soft drinks under the brand Double Seven.[1] MFIL was a wholly owned Central Government-owned PSU. It was taken over by Hindustan Lever Limited in January 2000.[2] This was the first privatisation of public sector unit by the government of India. Modern Foods had over 40% of the bread market in India.[3]

HUL was the sole bidder was Modern Foods. It paid Rs 10.5 million, as per the valuation exercise undertaken by its valuer ICICI, for 74% of the shares. Later the government exercised its put option to sell the remaining 26% to HLL for Rs 4.4 million in November 2002. In 2006, HUL merged MFIL with itself. Senior HUL officials said the acquisition was a complete misfit with the HUL culture and systems. The company had admitted that the acquisition was a mistake on account of improper due diligence.[4]

In 2001, HUL referred MFIL to Board of Industrial and Financial Reconstruction. Later HUL had plans to sell the company to Middle East-based Switz Group.

References

  1. ↑ "MODERN FOOD INDUSTRIES (INDIA) LIMITED". Ministry of Food Processing Industries. Retrieved 5 Jan 2012.
  2. ↑ "Brief Notes on Privatised Central Public Sector Enterprises (CPSEs)". Department of Disinvestment, Ministry of Finance. Retrieved 5 Jan 2012.
  3. ↑ S Guha Ray (21 June 2008). "Breaking Bonds With Bread". Tehelka,. Retrieved 5 January 2012.
  4. ↑ Anto T Joseph & Kala Vijayraghavan (7 December 2007). "Hindustan Unilever sells Modern Foods to Switz Group". The Economic Times,. Retrieved 5 January 2012.
This article is issued from Wikipedia - version of the 10/1/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.