Karuturi Global Ltd to buy 54 per cent in Florista India Pvt Ltd

In a bid to expand its business and offering in India, Karuturi Global Limited is to buy a 54 per cent stake in Florista India Private Limited. Florista India Private Limited is a chain of floral designing boutique stores across India. However, the deal was undertaken for an undisclosed amount. Karuturi reiterated that it plans to merge the Florista with its own flower retailing business ‘Flower Xpress’. As it is, Florista has 15 stores, including franchisee outlets and an online shop providing worldwide delivery in collaboration with other retailers. Flowers Xpress has 4 outlets in Bangalore and Hyderabad. The firm intends to grow the merged retail network in India to over 100 stores in two years. Its revenues after this acquisition are expected improve. Karuturi’s Flower Xpress has a turnover of around Rs 10 crore. Karuturi Global derives 95 per cent of its Rs 532 crore revenues from rose exports and the rest from producing other agri-commodities such as cereals and gerkins and retail operations. The firm plans to increase its revenue from agriculture. It had had leased around 311,700 hectares of land in Ethiopia and will start agricultural cultivation in a phased manner. It plans to grow crops like cereals, sugar and palm for future exports. Karuturi Global expects Rs 80 crore revenue from its agricultural business during this fiscal. Karuturi recently raised $16mn from IL&FS Tara India Fund III and plans to raise around $100mn more for expansion. Florista operates two formats, a standalone store and a quick service kiosk. It has around 8 store and 7 kiosks, of which it owns the Lower Parel store and two kiosks, rest being franchised. Florista does provide customs services for occasions such as birthdays, weddings and parties. To corporate, it provides flower arrangement contracts at lobbies, receptions and conference rooms apart from occasion based services. Karuturi Global is a world leader in production of cut roses with operations spread across Ethiopia, Kenya and India. With an area of over 239 hectares under Greenhouse cultivation, the firm annually produces around 555 million stems of quality cut roses, essentially for exports to high-value markets. It has identified agribusiness as its next prime growth domain. Karuturi has taken up cultivation in Ethiopia on a mega scale to become a key player in the global agro-products market. Its other business interests include food processing, floriculture retailing, and information technology.