Tirumala Invests In India's Largest Integrated Dairy
INDIA - Tirumala Dairy, the second largest private dairy player in South India, is sewing up plans to set up the country's largest integrated dairy with an investment of over Rs 5,000 crore in the next three to four years.
16 December 2011
2 minute read
TheHinduBusinessLine reports that global private equity firm Carlyle, which had picked up a 20 per cent stake in the company for Rs 110 crore earlier this year, is likely to put in fresh investments in Tirumala Dairy, as it begins to execute the expansion plan. Carlyle will also assist the company to raise funds through other overseas sources.
Founded by a group of rural entrepreneurs from Guntur district of Andhra Pradesh, Tirumala Dairy is an Rs 1,200-crore company by sales and aiming at a turnover of Rs 2,000 crore in the next three years. It sells about 12 lakh litres of milk a day through its various packing stations and dairy plants in Andhra Pradesh, Tamil Nadu and Karnataka, accounting for a 10 per cent market share in this region.
“The integrated dairy project will have over 20,000 buffalos and cows, milk processing centre and a milk products unit, along with a captive power project. We have already acquired 2,900 acres of land for the project near Vinukonda in Guntur district,” Mr B. Brahma Naidu told media persons.
The company launched its products in Tetra Pak packages. The product was launched by film actor Sneha.
Tirumala produces and markets a wide range of branded dairy products that include pasteurised milk, Indian style yogurt, butter, ice cream and other dairy derivative products.
Mr Naidu said the investment of Rs 5,000 crore will be met through a debt-equity funding of 80:20.
Mr Shankar Narayanan, Managing Director of Carlyle India, said the PE firm had conveyed its willingness to invest further in the dairy firm, apart from assisting it to raise funds from overseas agencies.
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