Chennai-based FMCG major CavinKare announced that it has forayed into the south by getting hold of Salem-based regional player, Maa Fruits, for Rs 30 crore (including debts).

Maa Fruits, No. 4 in south Indian market with a market share of 5% has now become fully-owned subsidiary of CavinKare.

The current portfolio of Maa Fruit’s comprises mango, pineapple, apple, pink guava range of Fruit drinks in different package sizes, manufactured at a plant at Dharmapuri, Tamil Nadu.

CavinKare has funded the recent acquisition through internal accruals. All 50 shareowners of Maa were paid a sale consideration of Rs 27.6 crore upon finishing of share purchase contract and the share transfer deeds.

C K Ranganathan, chairman and MD, CavinKare said, “It is a good buy for foraying into the beverages segment, which we will add to our food processing portfolio.”

“We will upgrade quality, double capacity, aggressively promote Maa brand through ad-vertisements and take it beyond south,” Mr. Ranganathan added.

Moreover, CavinKare has also decided to double-up its capacity by establishing another manufacturing plant, possibly in the north. An investment of Rs 30 crore is projected in the new plant.

Presently, CavinKare operates in the personal care, food and home care segments.

With the recent acquisition, CavinKare anticipates the company’s beverage sector to put in 7% to the total turnover. The company is likely to touch a turnover of Rs 500 crore in FY' 08.

CavinKare has also decided to re-launch ‘Chik’ in the hair care category with more brands coming in at various price points from Unilever, ITC and Godrej Consumer.