Under the terms of the term sheet, Allana Group will hold a 30% equity stake in JV, while CFPL will hold the remaining 70%
Mumbai: Allana Group and Chatha Food Limited (CFL) today announced the signing of the term sheet to establish a joint venture (JV) for manufacturing and sale of ready to cook and ready to eat meat products and chicken products with a capacity of 500 metric tons and 375 metric tons per month respectively. The estimated cost of the overall project stands at approx. INR 80-100 crore, which will be funded through a combination of debt and equity.
Under the terms of the term sheet, Allana Group will hold a 30% equity stake in JV, while CFPL will hold the remaining 70%. Additionally, the plant will produce a variety of ready-to-eat foods, ranging from finger foods to savory non-vegetarian snacks, catering to both domestic and international consumers.
Manish Muley, CEO, Allana Group, said, “The global demand for value-added ready-to-cook products is on a steady rise, driven by changing consumer preferences towards convenience and health-conscious options. By joining forces with CFPL, we are strategically positioning ourselves to capitalize on this growing overseas market opportunity. This partnership will enable us to enhance our product portfolio, optimize our supply chain, and strengthen our market position globally. Together, we aim to create a value proposition that caters to the evolving needs of consumers while delivering exceptional returns to our stakeholders. We expect that the new plant will be functional by end of 2025.”
Paramjit Singh Chatha, Managing Director, Chatha Food Limited said, “Our journey began in 1997 with an unwavering commitment to producing premium quality processed meat products using cutting-edge technology. This dedication has solidified our position as a leading player in India’s frozen and ready-to-eat meat market. Now, our partnership with Allana Group, another legacy name in the industry, is a natural progression of this commitment. And, together, we aim to redefine industry standards, expand our reach, and create a sustainable future for the Indian meat processing sector.”