Grm Overseas gains after board OKs to acquire 44% stake in Rage Coffee

Swmabhan Commerce, the parent company of the digital-first coffee brand Rage Coffee, it manufactures instant flavored coffee. Its production facility is located in Manesar, Haryana and it is co-owned by Bharat Sethi, Sixth Sense Ventures, and prominent figures such as cricketer Virat Kohli and actor Rannvijay Singha, the company reported a turnover of Rs 24.95 crore for FY23-24.

This acquisition aligns with the company's broader strategy under its newly launched platform, 10X Ventures, which aims to invest Rs 200 crore in digital-first, new-age direct-to-consumer (D2C) brands. Rage Coffee is the first significant investment under this platform, signaling the firm's intent to diversify and strengthen its portfolio in the FMCG sector.

The company plans to capitalize on its vast distribution network to expand Rage Coffee's presence both domestically and internationally, potentially supplying coffee beans and soluble powder to existing clients in international markets and opening coffee shops under the Rage Coffee brand.

'Acquisition of equity shares & compulsory convertible preference shares (CCPS) of Swmabhan Commerce is being completed at a mutually agreed pre-money enterprise valuation. The said pre-money enterprise valuation has not been disclosed herein due to reasons of confidentiality,' the company stated in exchange filing.

With this acquisition, the company strengthens its position in India's packaged food market, catering to the evolving preferences of new-age consumers. The company, which reported Rs 1,345 crore in revenue and Rs 105 crore in profits for FY24, aims to derive 20% of its future revenue from new-age companies like Rage Coffee while maintaining its leadership in the rice, atta, and edible oil sectors, it added.

The acquisition is expected to be completed within a year.

Atul Garg, managing director of GRM Overseas, said, 'This strategic investment in Rage Coffee aligns perfectly with our vision to drive growth in digital-first, health-focused, and lifestyle brands. Bharat Sethi's innovative approach has already made Rage Coffee a household name among consumers. We see enormous potential in expanding Rage Coffee's presence in the domestic market and leveraging synergies with our established export markets. Coffee, as a product category, aligns well with our international growth strategy, and we are excited to combine our deep industry expertise and distribution capabilities with Rage Coffee's dynamic offerings.'

GRM Overseas engaged in the business of processing and sale of almond kernels, paddy, clove, pista, rice, and wheat. The company markets their products under the brand name Kamdhenu and Chef and exports basmati rice to Saudi Arabia, Europe and other countries..

The company's consolidated net profit increased 3.3% to Rs 18.02 crore in Q1 FY25 as compared to Rs 17.44 crore posted in Q1 FY24. Revenue from operations jumped 15.5% YoY to Rs 370.08 crore in Q1 FY25.