AAK acquires major stake in Indian company

Edible oils AAK has acquired a 51% share of Indian specialty oils and fats company, Kamani, to strengthen its foothold in India.

The remaining 49% will continue to be held by the Chawlah family but a put/call option will allow AAK to acquire the remaining shares within the next three to seven years.

Last year Kamani reported revenues of €106 m (SEK 1000 m) and had an annual volume of 100,000 m tonnes.

President of AAK Asia, Torben Friis Lange, said India was a very interesting growth market due to its growing middle class, rapid urbanisation and rising per capita income.

“This acquisition will reinforce AAK’s speciality oils and fats strategy and offer a strong foothold in India. Kamani has very well-developed relations with both global and local customers. Together, we will continue to develop customer relations as well as the product portfolio of speciality and semi-speciality products.”

In 2014 the Swedish oils and fats company acquired Colombian company Fabrica Nacional de Gracas, Belgium’s CSM Benelux NV and Turkey’s frying oil brand  Frita, and reported operating profits of an all-time high.