AgroTech Foods plans to invest $18.52m in capacity expansion over the next two to three years. The investment announcement comes two months after US packaged food firm ConAgra acquired 3.66% stake in Agro Tech, boosting its overall stake in the company to 51.77% from 48.1%.
AgroTech has two plants in Uttarakhand and Hyderabad, and plans to set up six more. As a part of the capacity expansion, it will set up a peanut butter unit in Gujarat. The company will also launch ready-to-eat meals, oil sprays in cans and peanut butter in bottles and tubs under the Sundrop brand. The expansion will be financed through internal accruals.
Currently, the company produces edible oils under “Sundrop” brand and Act II popcorn. The edible oil brand is the largest in the premium category of the refined oil consumer packs, contributing 60% of the company's topline.