Del Monte drops India unit for stake in another food brand

Canned food maker Del Monte Pacific Ltd. will swap its stake in Del Monte Foods Pte. Ltd. (Del Monte India) for a direct shareholding in another consumer food product firm based in India as it explores more opportunities in Asia’s most populous country while trying to return to profitability.

In a stock exchange filing on Friday, Del Monte said it would get a 13-percent stake in Agro Tech Foods Ltd. (ATFL).

In turn, ATFL, which is dual-listed on India’s National Stock Exchange and Bombay Stock Exchange, will acquire the 59-percent equity stake held by the Bharti Group in Del Monte India.

“The group’s direct investment in ATFL means that it would be invested in a broader business that includes profitable product categories, which have yielded shareholder returns for several years,” Del Monte said in its disclosure.

According to the Campos-led firm, ATFL, with a market capitalization of $274 million, is widely known in India’s food and edible oils industry.

It recently rebranded as Sundrop Brands, Del Monte said, representing one of its popular products, Sundrop edible oil.

“India has been an exciting and flourishing market, and we are proud of the brand’s journey and impact on the Indian food industry,” Del Monte executive chair Rolando Gapud said.

Del Monte widened its net loss by 161 percent to $34.2 million in the first quarter of its 2025 fiscal year ending July 31 as its American business remained weak.

Del Monte, which is listed on the Philippine and Singapore bourses, earlier said it was executing plans to plug the bleeding in its finances, such as focusing on core markets. It expects to swing back to profitability next year.