Madhusudan Kela Acquires Stake in FMCG Player; Stock Surges 9%
Shares of Agro Tech Foods Ltd saw a sharp rally of nearly 9% on Tuesday, following the disclosure that veteran investor Madhusudan Kela’s firm, MK Ventures, has acquired a 4.6% equity stake in the FMCG company. The investment, highlighted in the latest shareholding data for the quarter ended June 2024, positions Kela among the key public shareholders of the company.
Agro Tech Foods, an affiliate of global agri-business giant ConAgra Brands, operates in India’s branded food sector, with a portfolio that includes established products under the Sundrop and ACT II labels. The company serves several core FMCG categories, including edible oils, ready-to-cook popcorn, instant snacks, cereals, and spreads.
The fresh equity acquisition translates to over 11.1 lakh shares, signaling strong confidence from institutional investors in the company’s growth trajectory. Kela’s entry comes amid a broader trend of increased investor interest in FMCG mid-caps linked to consumption uptrends and sector resilience.
Financially, Agro Tech Foods reported net sales of ₹219 crore in Q4 FY24, compared to ₹242 crore in Q4 FY23, reflecting a year-on-year dip of around 10%. However, despite the subdued topline, the company remains strategically focused on innovation and brand extensions across its high-margin product segments.
Its parent, ConAgra, continues to maintain a significant presence on the shareholding roster, underscoring long-term international support. As of June 2024, promoter holdings stood firm at 51.77%, with public shareholders and institutions holding the rest.
Kela’s investment aligns with a growing pattern of strategic bets in scalable FMCG plays that blend brand equity with expanding distribution networks. Analysts tracking the sector suggest such investments could trigger renewed market attention, particularly in niche FMCG firms reinventing their product lines to tap into evolving consumer preferences.
At the time of investor disclosure, the company’s stock was trading at ₹740.75 on the NSE, up 8.94% intraday, signaling bullish sentiment driven by strategic investor backing.
FMCG stakeholders will be watching closely to gauge if this development translates to broader value unlocking, particularly as volume-led growth and rural