CavinKare to raise more funds for new production units

The fund raising will support company's Rs 1,000 crore investment plans across its businesses

Chennai-based fast-moving consumer goods (FMCG) maker CavinKare, which last week raised around Rs 250 crore from private equity firm ChrysCapital, said it may look at another round of funding of similar size before it goes public in the 2015 financial year.

The company said the fund-raising plans will support it’s proposed Rs 1,000-crore investment across its businesses.

Speaking to Business Standard, C K Ranganathan, chairman and managing director of CavinKare, said: “The fund-raising would help the company in the capacity expansion, and targeting a turnover of Rs 3,000 crore, from the current Rs 1,250 crore, in the next four years.”

“The investment includes setting up new plants, research and development (R&D) and brand-building, especially in non-southern markets,” he said. On ChrysCapital coming on board, he said, “It is like having one more brain to say whether the decisions are right or wrong. Besides money, they bring management capabilities.”

CavinKare plans to set up a plant for personal care business in the western or eastern geographies of the country, besides putting up a dairy and snacks plants in the north.

With the international business contribution to its topline at just 5 per cent, the company has set a target to double it. The growth will be led by value-added dairy products and snacks in the markets where Indian diaspora is largely settled, Ranganathan said.

CavinKare makes hair and skincare products such as Chik, Spinz, Fairever and Nyle. The privately-held company is also present in the dairy and food and beverages segments.