KARLSHAMN, SWEDEN — AarhusKarlshamn (AAK) announced on Sept. 25 it has acquired a 51% ownership stake in Kamani Oil Industries Pvt Ltd., a leading specialty oils and fats company in India. Kamani had revenues of about SEK 1billion ($119 million) in 2014 and 100,000 tonnes of annual sales volume.

AAK said the remaining 49% of the company’s shares would be retained by the Chawla family, and Prakash Chawla will remain chief executive officer. AAK has a put/call option under which it has the right to acquire the remaining 49% of the company “within the next three to seven years.”

Kamani is headquartered in Mumbai, India and operates a modern production plant in Khopoli, about 40 miles to the southeast. AAK said the transaction is expected to close by Oct. 1 and is expected to begin contributing to AAK profitability in the first half of 2016.

“A growing middle class, a rapid urbanization and a rising per capita income, obviously makes India a very interesting growth market for AAK, and we very much look forward to start working together with the Chawla family,” said Torben Friis Lange, president AAK Asia. “This acquisition will reinforce AAK’s specialty oils and fats strategy and offer a strong foothold in India. Kamani has very well-developed relations with both global and local customers. Together, we will continue to develop customer relations as well as the product portfolio of specialty and semi-specialty products.”