US food giant General Mills seeks acquisitions in India

New York: Minneapolis-based food company, General Mills, is actively seeking acquisitions in India to bolster sales in emerging markets to make up for sluggish US retail sales.

Investing more in Yoplait yogurt is part of General Mills' restructuring plan, which also includes cutting roughly 2 percent of its global workforce and accelerating growth internationally, particularly in China and India.

In May this year, General Mills bought Pune-based Parampara's ready-to-cook spice and sauce mixes sold under the Parampara, StarterZ and Curry Tree brands. Terms of the deal were not disclosed. The Parampara brand line is sold in the Indian market and exported to the US, Canada and Japan.

[caption id="attachment_461906" align="alignleft" width="380"] General Mills is eyeing Indian acquisitions to boost sales in emerging markets to offset sluggish US retail sales. Photo courtesy: General Mills[/caption]

General Mills said that it is open to more deals in India and is hoping to gain market share in traditional grocery stores and the vastly popular healthier-foods segment, including low-calorie, natural and organic foods.

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"We've been looking for a while," Don Mulligan, the company's chief financial officer, told the Financial Times.

"We're looking at categories where our capabilities can play and looking for a company that can provide infrastructure for us," he added.

Mulligan, told the Financial Times strong growth in China and its recent 875-million-dollar acquisition of Yoki, a Brazilian food company, have given General Mills a foothold in two of the world's fastest-growing markets, making India the natural next step.

Mulligan's comments came as General Mills, the maker of Cheerios cereal and Betty Crocker baking products, reported strong first quarter earnings. General Mills saw net sales increase 5 percent in the first quarter to $4.05 billion.

According to analysts, the upside in international sales was driven by recent acquisitions in emerging markets. International sales rose 27 percent year-on-year to $1.09 billion, while in its American market, General Mills said net sales declined 1 percent to $2.49 billion as price increases failed to offset lower volumes.

General Mills India headquartered in Mumbai has a growing portfolio of products, including Pillsbury Fresh & Multi Grain Atta, Betty Crocker dessert mixes, Green Giant vegetables, Nature Valley granola bars and Hagen-Dazs ice cream.