Schreiber to pick 51% in Dynamix for Rs 170cr

The US-based Schreiber Foods, the second largest cheese producer in the world, has acquired controlling interest in the Rs 300 crore Dynamix Dairy Industries.

The multinational has consolidated its holdings to 51 per cent in the Mumbai-based dairy firm for Rs 170 crore. Rabo India Finance has facilitated the transaction for Schreiber Foods.

Schreiber views this investment as a first material step towards increasing its presence in India and thereby in Asia.

Schreiber's equity contribution of Rs 34.6 crore along with credit facilities from Rabo India Finance of Rs 112 crore and customer advances of Rs 20 crore have been utilised to finance the complete takeout of the existing lenders as part of a settlement package, Rabo India stated in a press release.

The US major had originally picked up a eight per cent stake in the company and had further increased its holding to 19 per cent by picking up the 11 per cent stake held by Britannia in 2002.

The move followed with Britannia entering into a joint venture with the New Zealand Dairy Board for its dairy business. Dynamix, promoted by KM Goenka, supplies milk and cheese to food majors such as Nestle, Britannia among others.

Dynamix's milk processing -cum-product manufacturing plant is located at Baramati, Pune with a capacity of 1.2 million litre per day. Dynamix is a reliable source of Casein for Schreiber.

Schreiber is US' largest private label cheese firm with clients such as McDonald's, Wal-Mart, Sysco, Albertson's, Burger King and American Stores.