You are here: Home » Companies » News
Business Standard

France's Lactalis to buy Tirumala Milk for $300 million

The Carlyle Group, which invested about $22 million in the company in 2010, holds about 20% stake

BS Reporter  |  Mumbai 

France’s Lactalis, the world’s largest dairy products group, will soon buy out Hyderabad-based Tirumala Milk Products for $275 -300 million, sources said.

Rothschild advised Lactalis on the deal, they said. Shankar Narayan, the managing director of the Indian arm of private equity giant The Carlyle Group, which has a fifth of Tirumala’s shares, confirmed the development on Tuesday. Tirumala’s founders own the remaining 80 per cent in the company. The Carlyle Group bought its shares for about $22 million in 2010.

Lactalis has an annual turnover of about $21 billion (Rs 1.3 lakh crore). Tirumala, established in 1998, had a turnover of Rs 1,424 crore for 2012-13. The Hyderabad company makes a wide range of dairy products, including sweets, flavoured milk, curd, milk powder and ice-cream.

India is the world’s largest milk producer, accounting for nearly a fifth of the world’s produce. Yet, private equity deals in the dairy sector have remained scarce. Among the major ones, Motilal Oswal, IDFC & IFC have put money in Parag Milks and IFC invested $7 million in Modern Dairies in 2008.

A report by the Associated Chambers of Commerce and Industry of India sees the dairy industry in India reaching Rs 5 lakh crore in turnover by 2015. It said production would rise to about 190 million tonnes (mt) in 2015 from 123 mt in 2011.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, January 08 2014. 00:39 IST
RECOMMENDED FOR YOU
.