US food giant McCormik enters Indian market

New Delhi: US food giant McCormick and Company signed a joint- venture with country’s major basmati rice supplier Kohinoor foods and marked its entry in packaged food business.
Satish Rao, Managing Director of the venture in India today said, “This is an exciting strategic initiative and enables McCormick to expand its flavor business into India. Key growth drivers for this business are distribution expansion, product innovation and brand building investment.”
He also said that the company is targeting sales of around $85 million in the first year of operation.
Alan Wilson, Chairman McCormick on his visit said, “Our mission is not only to grow Kohinoor’s basmati rice business but also to expand it further in a big way through other food categories that deliver flavor like cooking ingredients and convenience food.”
Talking about Indian markets Wilson, said, “India is a top priority market for McCormick and is in line with our emerging market growth strategy. We foresee India to be a significant business for McCormick in 10 years and the company has been participating in the Indian economy for more than 100 years beginning with sourcing of pepper and other flavor ingredients from the country for international markets.”
So far McCormick has invested more than $150 million in India, he added.
While talking to reporters, Gurnaam Arora MD Kohinoor foods said that his company enjoys a market share of 25 per cent of organised rice retail.
The joint-venture Kohinoor Speciality Foods India Private Ltd., is in the

ratio of 85:15 between McCormick and Kohinoor.