Kohinoor Foods to form JV with McCormick and Company

Kohinoor Foods has agreed to form a joint venture (JV) with the US-based food and seasonings maker McCormick and Company to market and sell its (Kohinoor’s) basmati rice and food products in India. Under the agreement, McCormick and Company agreed to invest $115 million, including an 85% interest in the new JV.

Recently, the company’s board had approved to transfer its undertaking relating to the business of manufacturing, processing, finishing, marketing, trading, distributing, importing, exporting and/or supply of food products. The company will also transfer all its assets and liabilities, employees, contracts, licenses, agreements, etc, as a going concern or otherwise.

The transfer is being made to a JV to be named Kohinoor Speciality Foods India that Kohinoor Foods has agreed to from with McCormick. The agreement is expected to be completed later this year subject to regulatory and other approvals in India, McCormick said in a statement.

Kohinoor Foods manufactures and distributes rice as well as cooking pastes, spices, seasonings and frozen foods in India, while McCormick is into manufacturing, marketing and distribution of spices, seasonings, specialty foods and flavorings.