ADF Foods To Solely Distribute Patanjali Ayurved's Products In Western Europe, U.K.
ADF Foods Ltd., seller of packaged frozen food and ready-to-eat items overseas, has agreed to exclusively distribute Patanjali Ayurved Ltd.’s products in Western Europe and U.K. Shares of the distribution company surged.
Its wholly owned arm ADF Foods UK Ltd. will leverage its distribution network to sell Patanjali Ayurved’s consumer products in the two regions, according to the company’s exchange filing.
“This development is in line with ADF’s strategy to widen its product portfolio and offer a complementary range to retailers, thus leading to better market penetration,” it said in a statement.
The move comes at a time when Patanjali Ayurved is looking to ramp up its exports. Patanjali Ayurved has yet to respond to BloombergQuint’s emailed queries.
ADF Foods’ legacy business is food exports, and is present in as many as 55 countries, including the U.S., U.K. and Middle East. It has a network of over 180 distributors. Its product portfolio comprises brands like Ashoka, ADF Soul, PJ’s, Nates, Camel, Aeroplane, Truly Indian and Khansaama.
According to its latest investor presentation, ADF Foods also distributes Hindustan Unilever Ltd.’s brands like Brooke Bond, Knorr, Lipton, Kissan Atta in the U.K. and the U.S.
Bimal Thakkar, chairman, managing director and chief executive officer of ADF Foods, was quoted as saying in the statement that the alliance will enable the company to further tap into the growing Indian diaspora market in Europe.
Shares of ADF Foods rose 11.4% to Rs 914.40 on Tuesday—its highest in nearly two months.