By purchasing Arani Agro Oil, AAK Enhances Its Position In Southeast India.

AAK AB (publ.) has bought all of Arani Agro Oil Industries Ltd.'s shares. The purchase is consistent with AAK's objective to grow regionally and improve its market position in the high-value speciality oils and fats sector in India. Arani operates from Kakinada Port on India's southeast coast.

In the following years, AAK will spend between 200 and 300 million Swedish Krona (SEK), inclusive of the purchase price, to boost manufacturing facility capacity and efficiency. AAK will also extend its community impact and assistance program in India to include the newly purchased AAK property.

"India's role in the global food supply chain continues to increase, and the food and health business is well positioned to see both local and export growth. This investment demonstrates AAK's commitment to helping to the development and expansion of our clients in India and beyond, as stated by Sten Estrup, President of AAK Asia.

The acquisition of Arani is a strategic move to further accelerate growth in a key market, according to Dheeraj Talreja, the president of AAK India. "Our operations in India have experienced strong growth, and the acquisition of Arani is a strategic next step to further accelerate growth in a key market." The purchase enables AAK to serve a high concentration of key clients in the Chocolate & Confectionery Fats, Nutrition, Bakery, and Dairy industries in the area.

Following a successful five-year joint venture with the company's founding family, AAK purchased all of Kamani Oil's shares in late 2020. Since then, AAK has created a new Indian headquarters and Customer Innovation Center outside of Mumbai, in addition to continuing to upgrade and grow the company's presence in India.

The deal is anticipated to conclude by the end of 2022. The transaction will be consolidated upon completion and will not have a major effect on AAK's financials.