UK’S ICONIC Indian food brand Patak’s looks at stake sale

£200M UK Food Brand Gives Review Mandate To Rothschild

Spice King Patak’s is up for grabs. The spicy brand, a rage in Britain, is considering an outright or part sale, and has been valued at £200 million (Rs 1,700 crore). The deal is likely to generate huge interest among Indian companies, which are eager to establish a global footprint. Even though the announcement came in late last evening, ET spoke to investment bankers and FMCG companies to find out the best suitor for Patak’s from India. The consensus was in favour of the Tatas though ITC is also tipped by some as being a strong contender. However, none of the two names could be independently verified. Patak’s, which turns 50 this year, has appointed NM Rothschild to review strategic options for the development of its business, just months after a bitter family feud over the ownership was settled. A leading manufacturer of pickles, sauces, and ready-to-eat Indian food, Patak’s is run by 54-year-old Kirit Pathak and wife Meena. In a brief statement, chairman and chief executive Kirit Pathak said the review will help the business to become the “world’s leading supplier of authentic Indian food.” Meena Pathak, 50, is group director of recipe development, and is credited with coming up with the original tandoori sauce in the bottle that adorns the shelves of most supermarkets. Kirit Pathak received an OBE in 1997, and Meena was awarded one in 2002. Patak’s had sales of £67m last year. It has plans to grow the business to more than £500m worldwide. Patak’s already distributes in over 40 countries, and was earlier considering an outlet in India. As Patak’s already has partnerships with both Heinz and Unilever, there’s media speculation that this may develop into something deeper with either of the two partners. A closer association would allow the brand to benefit from the greater distribution muscle the big multinationals enjoy. The company claims to supply to over 75% of Britain’s Indian restaurants. Of the options that Rothschild is reviewing, one is that of an outright sale though it is understood that the family is extremely keen to retain some involvement with the company. According to reports, it is unlikely that Patak’s which is 100% family owned, will consider a stock market flotation. The company may also consider a sale to a private equity player. Pathak told The Independent: “The growth of Patak’s over the past decade has been a remarkable success story. Our goal is to be the world’s leading supplier of authentic Indian food and we have exciting plans for the future development of the business. “We have, therefore, felt it appropriate to retain Rothschild to assist us in reviewing how best to achieve these ambitions.” Indian food is the fourth most popular cuisine in Britain, and the market for Indian ready meals and snacks is estimated at £500m. Sir Gulam Noon, the other Curry King, as he was known, sold his business to the Irish company Kerry Foods in 2005 for £124m. Forget the £66 million revenue, Patak’s is crucial for other reasons. Given the craze for Indian curries, especially chicken tikka masala in Britain and neighbouring countries in Europe, Patak’s curries and pickles offer mouth watering prospects for Indian companies. The company was recently embroiled in a bitter family dispute over ownership between Kirit Pathak and his two sisters.

Courtesy: EconomicTimes

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