A day after St Valentine showered his blessings on lovers everywhere, there's news of a deal that should make the global Indian takeover come out smelling of rose. Next Valentin's Day, when roses are gifted across the world, chances are that most such offerings will have an Indian imprint.
Thats's because Karuturi Networks, a little known Bangalore based company, is making a big move in the $80 billion floriculture space which will catapult it to largest rose grower in the world. The company is close to acquiring the Holland based Sher, the world's largest producer and supplier of roses, for less than $50 million. Sher's greenhouses in Holland, Kenya and Ethiopia produce 60 million roses annually.
When contacted, Ramakrishna Karturi, managing director of KARTURI NETWORKS confirmed that his company was in the process of wrapping up the deal butdeclined to provide details. The acquisition will be funded from internal accruals and the proceeds of a $25 million foreign currency convertible bond issue. UTI Bank and the London based Silverdale Services are involved in the deal.
It all began on Valentine's Day 12 years ago when Karuturi, a mechanical engineer, was sniffing around Bangalore for roses to take home to his wife. Finding none, he decided to stop out of the cable business he was running and plant high-value stem roses for a living. The man who set up Karuturi Networks - the company currently processes 12 million roses annually - is now ready to get more than a whiff of the global rose market.
Karuturi Networks has 60 hectares of land under greenhouses in India and Ethiopia for rose cultivation. Apart from the European company's facilities, Karuturi will also acquire a strong brand in Sher.
Source : Times Network
