Business Standard 18 September 2012
In an effort to pick up “substantial minority stake” in Pune-based Parag Milk Foods Private Limited, IDFC Private Equity Fund III, managed and advised by the Private Equity (PE) group of IDFC Alternatives Limited has invested Rs 155 crores through compulsory convertible debentures.
The erstwhile IDFC Private Equity is eyeing a 25 per cent internal rate of return (IRR) from the investment which is its second in rural infrastructure and first in the dairy sector.
“Having invested in compulsory convertible debentures for Rs 155 crore, we hope to acquire substantial minority stake in next 3-4 years depending on Parag Milk Foods’ performance. Parag Milk has created strong pan-India brands and has strengths across procurement, processing and distribution which are unique among private sector dairy companies,” said Girish Nadkarni, partner at IDFC Alternatives.
Parag is one of the leading private dairy companies in India and markets its products under the ‘Gowardhan’, ‘GO’ and ‘Pride of Cows’ brands. The company, with products made from 100 per cent cow milk, has a strong market leading position in cheese and ghee with many leading pizza chains as its customers. Parag recently launched its UHT milk product under the ‘GO’ brand.
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