Godrej Beverages and Foods would acquire 100 per cent stake in Nutrine jointly with IL&FS investment managers and other associates, sources said.
Company officials were, however, not available for comment. A formal announcement on the deal is likely to take place on Wednesday, the sources said.
Shares of Godrej Foods rose five per cent to Rs 10.94 and hit the upper circuit limit on the stock markets today despite a weak market. The 54-year-old Nutrine produces its confectionery with a main factory at Chittoor and with packing arrangements at various centres.
It is estimated to have a market share of close to 34 per cent in the confectionery segment. Nutrine has regional offices at Chennai, Bangalore, Hyderabad, Delhi, Mumbai, Kolkata and 40 depots and C&Fs throughout India.
Nutrine exports confectionery, gums and fruit bars to Canada, Malaysia, Mauritius, Myanmar, Mozambique, New Zealand, Nepal, Norway, Saudi Arabia, Singapore and Sri Lanka.
