ADF Foods’ Wholly Owned Subsidiary—ADF Holdings (USA) is planning to make an investment upto $5 million, which would entail asset purchase and setting up of a step down subsidiary in the United States. ADF Holdings (USA) will have a 70% stake in the share capital of the proposed Step Down Subsidiary. The proposed subsidiary will be a distribution company and will help the company move up the value chain. This will further strengthen its penetration and distribution with the retailers with an enlarged product portfolio.
The company has been investing in building a robust distribution network with uninterrupted supply as a precursor to their increasing capacities. The last quarter, the Company had commenced operations from their leased warehouse of 66,000 Sq. ft. in the US, which serves as a distribution center for the Company. The Company also recently made additions in the senior sales and marketing team.
ADF Foods manufactures and processes a wide range of canned, bottled and processed vegetables fruits and foods for the export and domestic markets with a manufacturing capacity of 12,600 tpa.