A leading Italian olive oil producer and exporter, Nicola Pantaleo S.p.A., has picked up a 27 percent stake in Indian olive oil firm Dalmia Continental Private Limited (DCPL).
DCPL’s Leonardo olive oil brand has a 30 percent share of the rapidly growing olive oil market in India.
Nicola Pantaleo, which bought the stake for an undisclosed sum, expects to achieve a foothold in the large and diverse Indian market where the consumer preferences are gradually shifting in favor of olive oil.
The funds from the deal will finance Dalmia’s aggressive marketing plans, while the joint venture will ensure a guaranteed and steady source of supply for DCPL at competitive rates.
DCPL Chairman VN Dalmia said: “The joint venture consummated a supply relationship that had been in existence since 2003 when DCPL launched its olive oil brand and is the first-ever joint venture in the olive oil sector in India as also the first Indo-Italian joint venture in olive oil in India.”
DCPL plans to invest about $11 million over a period of three years to build its olive oil brands and widen its distribution network. The company, which has revenues of more than $7 million last year, is aiming for a 150 percent growth this year based on a targeted sales turnover of about $20 million.
Pantaleo ranks among the top five olive oil exporters in Italy, and is a major exporter to markets such as the United States, European Union, Japan, South Korea, Russia, Brazil and Malaysia.