World’s largest dairy player Groupe Lactalis SA (Lactalis) has acquired South-based Tirumala Milk Products Private Ltd for an undisclosed amount.
This transaction marks the French company’s entry into the growing dairy market in India. Lactalis employs more than 54,000 people and operates in 70 countries through 200 factories.
According to Jaideep Khanna, CEO & Country Head for Barclays India, the sole financial advisor to the deal, it is one of the largest dairy transactions in India. Tirumala provides a strong platform for Lactalis’ entry into one of the largest dairy markets globally.
Tirumala, founded in 1996, is the second largest private sector dairy player in South India with a processing capacity of 1.66 million litres per day across 7 plants. It had first raised equity investment in 2010 from First Carlyle Ventures III and First Carlyle Growth VII, affiliates of global alternative asset manager The Carlyle Group
D Brahmanandam, Managing Director, Tirumala, said, “Tirumala has emerged a leader in the private sector dairy market in South India. This was possible due to our focus on quality. We are extremely happy to have partnered with Carlyle, who provided numerous value creation activities and acted as a catalyst in the growth of the company over the past few years. Tirumala is the partner of choice for Lactalis, and is well poised to emerge as a national brand with market leadership position.”
Shankar Narayanan, Managing Director, Carlyle India, said that Carlyle’s investment in Tirumala exemplifies its ability to partner with entrepreneurs to create value for all stakeholders. During Carlyle’s investment, he added that the company’s revenues grew two-and-a-half times and profits more than quadrupled.
Source:The Hindu Business
