A specialist sauce and condiment maker in the Midlands is set to expand its production capacity after securing a seven-figure bank funding package.
Panesar Foods, which currently produces about 15,000 tonnes of sauces, dips and chutneys a year, has agreed to £7.43m of finance from HSBC.
It will use the money to invest in production facilities with the aim of streamlining its packing process. Panesar said the new capacity would enable the company to increase production and recruit 30 additional staff to the 150-strong workforce to help meet increasing demand.
“Since we started out in 1992 we have come a long way, growing from a range of just four products to almost 1,000,” managing director Bill Panesar added.
The growing sauce business, based in West Bromwich, generated revenues of £24m in the year ended February 2014 – according to the latest available figures – with a pre-tax profit of £800k.
The deal was one of the first undertaken by the new corporate banking team for HSBC in Birmingham, with Rikki Griffiths appointed as area director and Gary Burton as regional director for the Midlands.
“Companies like Panesar Foods are ambitious and innovative, and I am delighted that our new corporate banking team was able to support Panesar with their business expansion.”
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