Patak’s looks to spice up global expansion options

THE family behind one of Britain’s best-known Indian food businesses has said it has begun a review aimed at satisfying its hunger for global expansion.

Patak’s has hired investment bank NM Rothschild to come up with options for growing the company, set up in North West London by LG Pathak in 1957 and should achieve sales of over £70 million (€103m) this financial year.

It remains 100% owned by the Pathak family, with around half of its 650 staff employed at a state-of-the-art factory at Leigh near Wigan.

The family is keen to remain with the business, so it is likely that a part sale could be one option for increasing investment, rather than a complete disposal. It is estimated Patak’s is worth around £200m.

As well as its sauces, pickles, breads and ready meals, the company also makes own-brand products for major supermarket chains and supplies around 75% of Britain’s Indian restaurants. The company has distribution deals in 40 countries but is keen to grow sales by developing the brand worldwide.

Over the past 10 years, Patak’s has added new product capabilities by buying factories, including a frozen food plant in Dundee in 1997 and a chilled foods business in Bellshill, North Lanarkshire, in 2005.

Chairman and chief executive, Kirit Pathak, who joined the business in 1970, described the company’s growth over the past decade as “a remarkable success story.”

“Our goal is to be the world’s leading supplier of authentic Indian food and we have exciting plans for the future development of the business,” he said. “We have, therefore, felt it appropriate to retain Rothschild to assist us in reviewing how best to achieve these ambitions.”