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Kochi , Sept. 27

The US-based private equity fund, New Vernon Private Equity Ltd, has decided to invest $10 million in Eastern Condiments, the flagship company of the Kerala-based Eastern Group.

The company has gone for fresh investments to expand and consolidate its core activity of curry powder manufacturing, Mr Navas Meeran, Eastern Group Managing Director, said at a press meet.

Expansion plans

Eastern Condiments, the largest exporter of packed curry powder to countries in West Asia from India, would use the new capital for expanding its footprint at all-India level, he said. "We are focussing the south-west corridor as the main area of expansion in the next 3-5 years. We have already established a sizeable presence in Mumbai with a sale of 20 tonnes of curry powder in a month", he said.

The company plans to make a foray into North India after consolidating its operations in Maharashtra and other southern States. "Our aim is to emerge as a major player in curry powder within the country in the next 3 to 5 years. We have a business plan, which incorporates the best practices of direct to retail marketing with this objective", he said.

The plan envisages transforming every vendor as a partner in a direct marketing network spread across the country. The plan implemented in Mumbai has received very good response.

The company is also in the process of entering into the bulk sales of curry powder to cater to the higher demand of curry powder. It is setting up two new factories of 100 tonnes per day capacity at Guntur in Andhra Pradesh and Kothamangalam in Kerala.

On the financial performance, he said the company, with a growth rate of 35 per cent, has set a target of achieving a turnover of Rs163 crore last in 2006-07 compared to the previous year turnover of Rs122 crore. It had also set a target of Rs21 crore profit as against Rs18 crore achieved last year.

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