Nagarjuna Agri-Tech Diversifies into Food Sector with Allenby Acquisition

Nagarjuna Agri-Tech Limited has finalized the acquisition of Allenby Food & Beverages Private Limited for ₹144.74 crore. Allenby Food & Beverages reported a turnover of ₹52.96 crore for the financial year ending March 31, 2025.

Deal Finalized

Nagarjuna Agri-Tech Limited (NATL) has completed its acquisition of Allenby Food & Beverages Private Limited (AFB), making AFB a wholly-owned subsidiary. The transaction involved a share swap, with NATL issuing 2,12,86,020 equity shares at ₹68 each.

The total acquisition cost reached ₹144.74 crore. As of September 30, 2025, Allenby Food & Beverages had a net worth of ₹48.73 crore. For the financial year ending March 31, 2025, AFB reported a turnover of ₹52.96 crore.

AFB's focus on ready-to-eat products, snacking, and bakery items supports NATL's move to expand its business portfolio.

Strategic Shift for Nagarjuna Agri-Tech

This acquisition marks a strategic diversification for Nagarjuna Agri-Tech, shifting from its traditional floriculture operations into the consumer-focused food and beverage sector. The company plans to use AFB's established presence in the snacking and bakery markets to boost NATL's revenue and market reach.

Nagarjuna Agri-Tech's Diversification Push

Nagarjuna Agri-Tech has previously explored diversification into consumer businesses. The company had approved acquiring Kathleen Food Private Limited and Kathleen Confectioners, targeting the Quick Service Restaurant and Bakery Chain segment.

Separately, Dr. KVLN Raju resigned as NATL's Managing Director in January 2025 for professional and personal reasons.

NATL's primary business has been floriculture, specializing in rose cultivation and export. However, the company has faced difficulties, including a five-year sales growth decline of -68.1% and low return on equity. Promoters have also pledged a substantial portion of their shares.

Operational Changes Post-Acquisition

• Allenby Food & Beverages Private Limited is now a wholly-owned subsidiary of Nagarjuna Agri-Tech Limited.
• NATL gains direct entry into the food and beverage market, specifically for ready-to-eat, snacking, and bakery goods.
• The company's business portfolio will broaden, potentially shifting focus away from floriculture.
• Integration of AFB's operations and financial reporting into NATL's consolidated statements will begin.

Key Challenges Ahead

• Nagarjuna Agri-Tech's Chief Executive Officer (CEO) position is vacant after a board resolution was cancelled due to the candidate's medical reasons. This situation could affect strategic decisions and oversight.
• NATL's past financial performance, including declining sales and low profitability, presents challenges for integrating and growing the newly acquired business.
• The success of the share swap and the future performance of NATL's equity shares are critical to the deal's overall value.

Industry Comparisons

Companies such as Godrej Agrovet have expanded their agri-business operations into processed foods. While Godrej Agrovet offers a broader portfolio, NATL's entry into F&B reflects a wider trend of agri-focused companies pursuing higher-margin consumer businesses.

Britannia Industries, a leading player in India's food sector, demonstrates the market's potential and scale, operating solely within F&B without an agricultural background.

Key Deal Metrics

• Allenby Food & Beverages' Paid-Up Share Capital was ₹14.19 crore as of March 31, 2024.
• Allenby Food & Beverages reported a turnover of ₹52.96 crore for the financial year ending March 31, 2025.
• The acquisition by Nagarjuna Agri-Tech involved issuing 2,12,86,020 equity shares.

Investor Focus Points

• Nagarjuna Agri-Tech's appointment of a new Chief Executive Officer.
• Operational performance and revenue growth of Allenby Food & Beverages as a subsidiary.
• Synergies achieved or challenges encountered during AFB's integration into NATL.
• The financial health and strategic direction of NATL's floriculture business.