Sumuka Agro and Gujjubhai Foods Merger Approved: A Strategic FMCG Expansion

Sumuka Agro Industries Limited, listed on the BSE under the symbol 532070, has announced a significant milestone with the approval from the Securities and Exchange Board of India (SEBI) for the merger of Gujjubhai Foods into its business. This marks an important step in their strategy to strengthen their foothold in the fast-moving consumer goods (FMCG) sector.

Celebrated for a diverse range of Gujarati namkeens such as khakhra and bhakhri, Gujjubhai Foods is set to merge with Sumuka through a process of absorption, pending final approval from the National Company Law Tribunal (NCLT). Shaili Patel Bhatt, the Director and CFO of Sumuka Agro, expressed excitement over the merger, highlighting the potential for expanded market reach and enhanced growth through collective expertise and resources.

The merger was facilitated by a 'no objection' nod from the Bombay Stock Exchange in July 2024, paving the way for financial and operational synergies that aim to bolster Sumuka Agro's competitive edge. Post-merger, the promoters' stake is expected to increase significantly. Sumuka Agro has been witnessing swift revenue growth, showcasing innovation and expansion across various product segments.

(With inputs from agencies.)