Wednesday 11th September
A Birmingham-based wholesale supplier of quality products to the food and drink industry has secured £1.5m from MEIF Maven WM Debt Finance, part of the Midlands Engine Investment Fund.
The loan will enable Indus Foods to create manufacturing units and extend its existing warehousing to improve efficiencies. The funding will also provide investment into the company’s new production hub and support the creation of a number of jobs in the region.
Indus Foods offers a range of services across the food service, manufacturing, retail and wholesale sectors, specialising in ethnic foods. The company is a wholesaler of Asian Foods which include spices, tinned ingredients, oils and flours. Indus Foods serves around 5,000 retail and foodservice customers and also supplies fast food packaging and housewares.
According to the Institute of Export, in 2018 there was a 12% increase in the amount of spices being transported from India to the UK, this was predicted to rise in 2019, with the most popular cuisines being from Sri Lanka and Burmese, which both heavily use spices. Following distinct market opportunities, the Company is at the forefront of driving growth within the Independent Wholesale sector.
Indus Foods is led by Managing Director, Tariq Areehy, a highly experienced businessman and entrepreneur.
Tariq Areehy, Managing Director at Indus Foods said, "We are delighted to receive this funding boost to enable us to execute our growth plans. We are looking forward to modernising our warehouse and creating a manufacturing and production hub where whole spices will be prepared under our own brand label. We have some really exciting plans ahead and we are looking forward to working with the Maven team to grow the business.”
Raj Minhas, Investment Manager at Maven Capital Partners, said, "Indus Foods is a well-established and profitable business that is looking to revamp its building to allow it to operate more effectively and efficiently as part of its growth plan. We are delighted to provide the business with this loan to help it pursue these ambitious plans and look forward to working with Tariq and the team.”
Ryan Cartwright, Senior Manager at the British Business Bank, said, "The Midlands is home to a range of ambitious businesses looking to grow. With investment from MEIF, small businesses like Indus Foods are able to fund expansion projects, create new jobs and in turn support the growth of the region’s economy.”
Pat Hanlon, Director for Access to Finance at GBSLEP said, "This is a fantastic example of how our investment in the Midlands Engine Investment Fund can help Greater Birmingham businesses generate new, local jobs and support a sector which is incredibly important to the economic growth of the region. The new hub will become a major asset for the business, and we’re looking forward to seeing continued success for Indus Foods.”
The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
About the Midlands Engine Investment Fund (MEIF)
- The Midlands Engine Investment Fund, supported by the European Regional Development Fund, will invest in Debt Finance, Small Business Loans, Proof-of-Concept and Equity Finance funds, ranging from £25,000 to £2m, specifically to help small and medium sized businesses secure the funding they need for growth and development.
- The Midlands Engine Investment Fund is operated by British Business Financial Services Limited, wholly owned by British Business Bank, the UK’s national economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity.
- The Midlands Engine Investment Fund is supported by the European Regional Development Fund, the European Investment Bank, the Department for Business, Energy and Industrial Strategy and British Business Finance Limited, a British Business Bank group company.
- The MEIF covers the following LEP areas: Black Country, Coventry & Warwickshire, Greater Birmingham & Solihull, Stoke-on-Trent and Staffordshire, The Marches, and Worcestershire in the West Midlands; and Derby, Derbyshire, Nottingham & Nottinghamshire (D2N2) Greater Lincolnshire, Leicester and Leicestershire, and South-East Midlands in the East and South-East Midlands.
- The project is receiving up to £78,550,000 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The programme will continue to spend to the end of 2023.
- The Ministry for Housing, Communities and Local Government is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit www.gov.uk/european-growth-funding.
- The Government has guaranteed all funding allocated through EU programmes until the end of 2020. https://www.gov.uk/government/news/funding-from-eu-programmes-guaranteed-until-the-end-of-2020
- The European Investment Bank is providing £122,500,000 to support the Midlands Engine Investment Fund. This follows backing for the Northern Powerhouse in 2017 and backing for the newly launched North East Fund. For further information visit www.eib.org
- The funds in which Midlands Engine Investment Fund invests are open to businesses with material operations in or planning to open material operations in the West Midlands and East & South-East Midlands.
- The British Business Bank has published the Business Finance Guide (in partnership with the ICAEW, and a further 21 business and finance organisations). The guide, which impartially sets out the range finance options available to businesses and provides links to support available at a regional level, is available at www.thebusinessfinanceguide.co.uk/bbb.
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