Agro Tech Foods , the Rs 650-crore maker of Sundrop refined edible oils and Act II popcorn, announced that it had sold off its Rath vanaspati brand to edible oils maker Cargill India. Agro Tech had acquired Rath from the Siddharth Shriram Group in 2000 to increase the volume of its vanaspati business. But the brand has been slipping in market shares and equity.
Vanaspati as a category is stagnant, its usage is restricted mainly to institutional and sweets makers, and is no longer popular in the retail market. Other vanaspati brands in the market include Gagan, Parag and Dalda, which US-based oilseeds processing company Bunge had acquired from Hindustan Unilever in 2003 for Rs 90 crore.