Funds Advised by Convergent Finance and Samara Capital to Acquire an Additional 4.99% Stake in Sundrop Brands

NewsVoir
Mumbai (Maharashtra) [India], December 24: Funds advised by Convergent Finance LLP ('Convergent') and leading private equity firm Samara Capital ('Samara') through their jointly owned and controlled company, CAG-Tech Mauritius Limited ('CAG-Tech'), have signed definitive documents for the acquisition of an additional 4.99% stake in Sundrop Brands Limited ('Sundrop') from DMPL India Ltd ('DMPL'), an Indian subsidiary of US-based food company, Del Monte. Pursuant to the deal, CAG-Tech, the promoter of Sundrop, will increase its holding to 38.91%.
In addition, CAG-Tech also has an option to buy another 4.99% stake from DMPL, exercisable after April 1, 2026.
In August 2024, Convergent and Samara jointly acquired a controlling stake in Sundrop by acquiring CAG-Tech. Following this acquisition, Sundrop's food portfolio was expanded through the purchase of 100.00% of Del Monte Foods Pvt Ltd ('Del Monte'), a joint venture between Bharti Group and Del Monte, in an all-stock deal of USD 154 million.
Sundrop continues to strengthen its position in India's fast-growing packaged foods market through a widening product portfolio and expanding national footprint. The company benefits from strong brand equity, a robust pan-India distribution network, and a disciplined strategy focused on quality, innovation, and consumer trust. By increasing their shareholding, Convergent and Samara are further deepening their commitment to Sundrop's long-term growth.
These attributes position Sundrop to capture the structural shift toward branded, packaged food products as household consumption patterns evolve. With a clear roadmap for operational excellence and category expansion, the company is, in our view, well set up for sustained success and value creation.
Harsha Raghavan, Managing Partner at Convergent Finance, said, "Sundrop is uniquely positioned to benefit from India's accelerating demand for trusted, high-quality food and beverage brands. By increasing our stake, we are reinforcing our conviction in the leadership, its strategy, and its potential to deliver attractive long-term compounding for all stakeholders."
Manish Mehta, Managing Director and Co-Chief Investment Officer at Samara Capital, said, "We are pleased to further back Sundrop in its journey of building enduring household brands. The company's consumer-centric strategy, deep retail reach, and growing portfolio of scalable categories give us strong confidence in its ability to deliver sustainable, profitable growth over the coming years."
Convergent Finance LLP is an investment management and advisory partnership at the forefront of bringing together Ideas, Capital, and passionate Entrepreneurs. The Convergent investment process involves identifying proprietary platform and bolt-on opportunities, speed of execution, and a relentless focus on performance improvement. The Convergent value investing approach believes in paying fair and reasonable valuations through bilaterally negotiated transactions.
Founded in 2007, Samara Capital is one of India's leading mid-market private equity firms that invests in emerging partners with entrepreneurs and management teams to help businesses achieve their true potential, thereby creating long term value for all stakeholders. Samara's investment strategy believes that focusing on input metrics and culture-building leads to sustainable and scalable business performance. Consumer and Retail is one of the largest focus areas for the firm. Samara has done multiple platform buildouts to create market leaders in sectors such as Consumer and retail, business services and healthcare.
Sundrop Brands Limited is a public limited company engaged in the business of creating, marketing and distributing innovative, delicious and convenient food solutions. Sundrop is listed both on National Stock Exchange and Bombay Stock Exchange. Widely recognized for its popular brands like ACT II popcorn, Del Monte, and Sundrop edible oils, the company has a vision to deliver joyful food experiences to the modern consumer.
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