<article>Mumbai-based private equity firm <a href="http://dealstreetasia.com/tag/convergent" target="_blank" rel="noopener">Convergent Finance</a> has made its maiden investment by leading a Rs 154 crore ($21.6 million) round in FMCG manufacturing firm <a href="http://dealstreetasia.com/tag/hindustan-foods" target="_blank" rel="noopener">Hindustan Foods Ltd</a>.</article>

Mumbai-based private equity firm <a href="http://dealstreetasia.com/tag/convergent" target="_blank" rel="noopener">Convergent Finance</a> has made its maiden investment by leading a Rs 154 crore ($21.6 million) round in FMCG manufacturing firm <a href="http://dealstreetasia.com/tag/hindustan-foods" target="_blank" rel="noopener">Hindustan Foods Ltd</a>.
Convergent is led by Harsha Raghavan,  who previously founded and led Fairfax’ investment activities in India.
According to an official statement, Convergent will acquire a significant minority stake of between 20 per cent and 26 per cent (on a fully converted basis) following the transaction.
The deal is subject to closing conditions, including approval of shareholders.
According to media reports, existing investor Sixth Sense Ventures also participated in the round. In 2016, the consumer-focused venture capital firm had picked up around 16 per cent stake in public-listed Hindustan Foods for Rs 8 crore.
Founded in 1988, Hindustan Foods manufactures food and non-food products extending to cosmetics, personal care and home care segments. It has factories across six locations and offers pan-India contract manufacturing services to top FMCG customers. The company went public in 1989 and has been under the current management since 2013.
The company plans to use the funding proceeds to expand capacities.
&#8220;The Convergent team has deep expertise in adding value through M&amp;A and notably bolt-on acquisitions, which is the need of the hour in the contract manufacturing sector. We will also benefit greatly by their global network of relationships, strategic insights and operational expertise,&#8221; said Sameer Kothari, MD, Hindustan Foods.
In 2017, Hindustan Foods signed an agreement to acquire Reckitt Benckiser (India) Pvt Ltd‘s pest products manufacturing factory in Jammu, in north India, for an undisclosed amount.
In 2016, it bought some movable assets and inventory of the leather business of Pond’s Exports Ltd, a subsidiary of Hindustan Unilever Ltd.
&#8220;We view Hindustan Foods as an excellent platform and look forward to working with them to expand their business both organically and inorganically,&#8221; said Harsha Raghavan, Managing Partner of Convergent.
Also Read:
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/india-dealbook-159-85216/" target="_blank" rel="noopener">Hindustan Foods acquires pest products factory from Reckitt Benckiser</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/60800-60800/" target="_blank" rel="noopener">India: HUL arm to sell leather biz assets to Hindustan Foods</a> 

<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/india-dealbook-hindustan-foods-nykaa-rupaiya-exchange-wittyparrot-raise-funding-60211/" target="_blank" rel="noopener">VC firm Sixth Sense invests in Hindustan Foods</a>

PE firm Convergent Finance has made its maiden investment by leading a Rs 154 crore ($21.6 million) round being raised by FMCG firm Hindustan Foods Ltd.

India: Convergent Finance strikes first deal, leads $22m funding in Hindustan Foods

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India: Convergent Finance strikes first deal, leads $22m funding in Hindustan Foods

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