American food company Kraft Heinz Co. has narrowed the list of bidders for a portfolio of Indian businesses it is selling that includes the children's milk drink Complan.
Tata Group, India's biggest conglomerate, and Dabur India Ltd., the $11.3 billion consumer-goods company, are among suitors selected for the second round of bidding, according to the people. The sale has also drawn interest from an arm of Cadila Healthcare Ltd. and other potential buyers.
Kraft Heinz has been seeking about $1 billion for the assets, the people said. In addition to the Complan product, the Indian businesses being sold include the Glucon D instant energy drink, Nycil talcum powder and Sampriti clarified butter.
Heinz is bringing Complan to market as UK pharmaceutical firm GlaxoSmithKline Plc weighs selling its stake in its Indian consumer health subsidiary, which owns malted milk brand Horlicks.
The price sought by Kraft Heinz translates into more than 20 times earnings before interest, taxes, depreciation and amortisation. Some potential bidders have balked at the valuation, due to what they see as lower growth prospects for certain products amid changing consumer tastes in India.