Dutch dairy deal sparks funding bid from food tech firm Nandi

Published on Friday 28 December 2007 20:36

NANDI Proteins, a spin-out from Heriot-Watt University in Edinburgh, has launched a new round of funding and is in discussions with a number of global food producers just months after clinching its first major deal with a Dutch dairy company.

Nandi earlier this year signed up with Friesland Foods to supply the Dutch firm with its protein technology in a deal which could be worth more than 2 million to the company in royalties.

The technology is used to add supplements to foods such as dairy free or low-fat products.

Friesland, which is using Nandi's technology in products distributed throughout Europe and the Far East, will pay an initial, undisclosed access fee, but Nandi believes royalties from the deal could be worth around 2m over the next two to three years. David McCartney, chief executive of Nandi, said he was looking to raise a six-figure sum from a new investor – likely to be a private equity company – and planned to beef up the company's five-strong board with the appointment of a new finance director.

The company is also looking to take on two new food technologists to take the staff count to six.

He said: "We are in discussions with a number of other global companies which is likely to lead to deals of a similar size to Friesland.

"This is the biggest deal we've had by a long way. Getting the first major contract is the hard part – we hope it will bring us into new markets."

He added that the firm was looking to boost turnover to 500,000 next year.

Edinburgh-based Nandi is also taking steps to patent its latest technology with Scottish patent attorney Marks & Clerk.