AAK strengthens its position in South East India with the acquisition of Arani Agro Oil

AAK AB (publ.) has acquired 100 percent of the shares of Arani Agro Oil Industries Ltd. The acquisition is in line with AAK’s strategy to expand geographically and increase its market share in IndiaThe market for high value specialty oils and fats. Arani operates from the port of Kakinada on the southeast coast of India.

In the coming years, AAK will invest an estimated total of SEK 200-300 million, including consideration of acquisition, to increase capacity and improve efficiencies at the production facility. In addition, the investment will support the broader development of the region, and AAK will expand its community impact and support program in India to the newly acquired AAK site.

“India continues to grow in importance to the global food supply chain, and the food and healthcare industry is uniquely positioned to enjoy both domestic and export growth. This investment confirms AAK’s commitment to making an impact positive and contribute to the growth and expansion of our customers. India and beyond,” says sten estrupPresident of AAK Asia.

“We have seen strong growth in our operations in Indiaand the acquisition of Arani is a strategic next step to further accelerate growth in a key market,” he says. Dheeraj TalrejaPresident AAK India. “The acquisition gives AAK a platform to serve a high concentration of strategic clients within Chocolate & Confectionery, Nutrition, Bakery and Dairy in the region.”

At the end of 2020, AAK acquired 100 percent of the shares of Kamani Oil following a successful five-year joint venture with the founding family. Since then, AAK has established a new headquarters in India and a Customer Innovation Center outside Mumbaialong with continued investments in improving and expanding the company’s existing footprint in India.

The transaction is expected to close before the end of 2022. The acquisition will consolidate upon closing and has no material impact on AAK’s finances.

For more information, contact:carl ahlgrenHead of IR and Corporate Communications
Mobile: +46 70 681 07 34
Email: [email protected]

The information was sent for publication in 8:30 a.m. CET in November 25, 2022.

About AAK
Everything AAK does is about Making Better Happen(TM). We specialize in plant-based oils that are the value-adding ingredients in the products people love to consume. We make these products taste better, healthier and more sustainable. At the core of AAK’s offering is co-customer development, which combines our desire to understand what means best for each customer with the unique flexibility of our production assets and deep knowledge of products and industries. 4,000 employees support our close collaboration with customers through 25 regional sales offices, 15 dedicated Customer Innovation Centers and support from more than 20 production facilities. Listed on the Nasdaq in Stockholm and with our headquarters in Malmö, SwedenAAK has been making the best happen for over 150 years.

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(c) Decision of 2022. All rights reserved., source Press Releases – English

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