Modern Food Industries
Modern Food Industries is an Indian bakery and food company established by the Government of India and later transferred through successive private-sector ownership.
Last updated August 31, 2026
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Overview
Modern Food Industries, formally Modern Food Industries (India) Limited, is an Indian bakery and food business whose origins lie in Modern Bakeries (India) Limited, established in 1965 under the Colombo Plan. The enterprise was created as a wholly owned public-sector undertaking of the Government of India and became associated primarily with packaged bread production. Its headquarters and an important manufacturing location were at Kazhikundram in Taramani, Chennai, Tamil Nadu. The company was renamed Modern Food Industries in 1982. During its public-sector period, it developed a nationwide manufacturing footprint, with bread plants in 13 Indian cities. The business reportedly held more than 40% of India's bread market, making it one of the country's most significant organized bread producers. Its product scope extended beyond bread: it marketed fruit-juice concentrate under the Rasika brand in Delhi and produced the Double Seven aerated soft drink. These activities reflected the broader food-manufacturing role assigned to the company rather than a narrowly focused bakery portfolio. Modern Food Industries became historically important in Indian economic policy because its sale represented the first privatization of a public-sector unit by the Government of India. In 2000, during the premiership of Atal Bihari Vajpayee, the government disinvested the company to Hindustan Unilever Limited. Hindustan Unilever was the sole bidder and initially purchased 74% of the shares for Rs 10.5 million, based on a valuation exercise conducted by ICICI. The government later exercised its put option and sold the remaining 26% to Hindustan Unilever for Rs 4.4 million in November 2002. The acquisition subsequently proved difficult for Hindustan Unilever. In 2001, the company referred Modern Food Industries to the Board of Industrial and Financial Reconstruction. Later accounts by senior Hindustan Unilever officials characterized the acquisition as poorly aligned with the parent company's culture and systems, and the company acknowledged that inadequate due diligence had contributed to the decision. Hindustan Unilever ultimately merged Modern Food Industries into itself in 2006. The business was separated from Hindustan Unilever when it was sold to Singapore-based Everstone Capital Asia in April 2016. In February 2021, Mexican bakery group Grupo Bimbo acquired the company. The available reference material does not establish the current legal status, operating footprint, or whether all historical brands and facilities continue under the Modern Food name. Its documented significance therefore rests on three linked aspects: its role in the development of India's packaged-bread industry, its status as a major government-owned food manufacturer, and its place in the early history of Indian public-sector privatization.
History
Modern Food Industries began in 1965 as Modern Bakeries (India) Limited. It was established by the Government of India under the Colombo Plan and operated as a wholly owned central-government public-sector undertaking. The business was created to build organized food manufacturing capacity in India, with bread as its principal activity. Its headquarters and a manufacturing site were located at Kazhikundram in Taramani, Chennai, Tamil Nadu. The company adopted the name Modern Food Industries in 1982. Over time, it developed bread manufacturing units in 13 Indian cities and became a substantial participant in the national bread market. The company reportedly controlled more than 40% of India's bread market during its public-sector period. In addition to bread, it marketed fruit-juice concentrate under the Rasika name in Delhi and produced Double Seven, an aerated soft drink. These products show that the enterprise operated as a diversified government food company, although bread remained its defining business. Modern Food Industries entered Indian privatization history in 2000. The Government of India sold a 74% stake to Hindustan Unilever Limited, making the transaction the first privatization of a public-sector unit by the Indian government. Hindustan Unilever was the sole bidder and paid Rs 10.5 million for the initial stake, according to the valuation exercise cited in the reference material. The government retained 26% temporarily and subsequently used a put option to sell that holding to Hindustan Unilever for Rs 4.4 million in November 2002. The ownership transfer did not produce a durable strategic fit. In 2001, Hindustan Unilever referred Modern Food Industries to the Board of Industrial and Financial Reconstruction. Later comments from senior Hindustan Unilever officials described the acquisition as inconsistent with the parent's culture and systems. Hindustan Unilever also acknowledged that insufficient due diligence had contributed to the acquisition being a mistake. In 2006, Modern Food Industries was merged into Hindustan Unilever. The business later re-emerged as a separately transacted asset. Hindustan Unilever sold it to Singapore-based Everstone Capital Asia in April 2016. Grupo Bimbo, the Mexican bakery group, acquired Modern Food Industries in February 2021. The supplied sources do not provide enough information to confirm the present brand architecture, manufacturing locations, product continuity, or corporate status after that acquisition. Modern Food Industries is consequently best documented as an Indian packaged-bread pioneer and as a company central to the early Indian public-sector disinvestment program.
- 2021
Acquisition by Grupo Bimbo
[1]Grupo Bimbo acquired Modern Food Industries in February.
- 2016
Sale to Everstone Capital Asia
[1]Everstone Capital Asia acquired Modern Food Industries from Hindustan Unilever.
- 2006
Merger into Hindustan Unilever
[1]Hindustan Unilever merged Modern Food Industries into the parent company.
- 2002
Remaining government stake is transferred
[1]The government sold its remaining 26% holding to Hindustan Unilever after exercising its put option.
- 2000
First Indian public-sector privatization
[1]The Government of India transferred 74% of Modern Food Industries to Hindustan Unilever, in a transaction described as the country's first public-sector privatization.
- 1982
The company adopts the Modern Food Industries name
[1]Modern Bakeries (India) Limited became known as Modern Food Industries.
- 1965
Modern Bakeries is established
[1]Modern Bakeries (India) Limited was established under the Colombo Plan as a wholly owned Government of India public-sector enterprise.
Products and positioning
Historically positioned as a mass-market Indian food manufacturer and packaged-bread producer, with national-scale public-sector distribution and manufacturing.
Packaged bakery
Modern packaged bread
Bread was Modern Food Industries' core product and the basis of its national market position. The company operated bread manufacturing units in 13 Indian cities and reportedly held more than 40% of India's bread market during its public-sector period. The available source does not specify individual bread variants or current availability.
Fruit-juice concentrate
Rasika
Rasika was the name used for fruit-juice concentrate marketed by Modern Food Industries in Delhi. The reference material does not provide formulation, packaging, launch date, or information about whether the product remains active.
Aerated soft drink
Double Seven
Double Seven was an aerated soft drink produced by Modern Food Industries as part of its broader food and beverage portfolio. The supplied material does not establish the product's exact launch date, distribution, or current status.
Brand decisions
2021
Grupo Bimbo acquires Modern Food IndustriesM&ABackground
Modern Food Industries was owned by Everstone Capital Asia after its divestment by Hindustan Unilever.
Action taken
Grupo Bimbo acquired the company in February 2021.
Aftermath
The business became part of the Mexican bakery group. The supplied sources do not establish its subsequent brand or legal structure.
2016
Hindustan Unilever sells the business to EverstoneM&ABackground
Hindustan Unilever subsequently decided to exit the Modern Food Industries business.
Action taken
The company was sold to Singapore-based Everstone Capital Asia in April 2016.
Aftermath
Modern Food Industries returned to separate ownership outside Hindustan Unilever.
2006
Hindustan Unilever merges Modern Food IndustriesM&ABackground
The acquired bakery business had been a difficult fit with Hindustan Unilever's culture and systems, and the company had acknowledged shortcomings in due diligence.
Action taken
Hindustan Unilever merged Modern Food Industries into itself.
Aftermath
Modern Food Industries ceased to operate as a separately merged company within Hindustan Unilever.
2002
Hindustan Unilever acquires the remaining government stakeM&ABackground
The Government of India retained 26% after the initial disinvestment and held a put option.
Action taken
The government exercised the put option and sold the remaining 26% to Hindustan Unilever.
Aftermath
Hindustan Unilever became the full owner of Modern Food Industries.
Consideration for remaining 26% stake. Rs 4.4 million (November 2002)
2000
Government approves sale of a controlling stake to Hindustan UnileverM&ABackground
The Government of India sought to disinvest the public-sector food company. Hindustan Unilever was the sole bidder.
Action taken
The government sold 74% of Modern Food Industries to Hindustan Unilever.
Aftermath
The transaction became known as the first privatization of an Indian public-sector unit. The acquisition later faced strategic and operational criticism within Hindustan Unilever.
Consideration for 74% stake. Rs 10.5 million (2000)
Recent events
Sources2 sources
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