Parag Milk Foods, the makers of Gowardhan brand milk products, wants to raise Rs 400-500 crore either from private equity firms or through IPO as part of its expansion plans, a top company official said today.
The amount, to be raised over the next three years, will be used for opening company's third plant in North East and expanding milk processing facility at its Palamner plant, Parag Milk Foods Chairman Devendra Shah told reporters here.
"The business is growing...We are looking to raise Rs 400-500 crore over the next three years for expansion including the proposed plant," Shah said.
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"Today we have not decided to go for IPO immediately, but one day definitely we will have to enter market. Right now we have (two) PE investment. The expansion will be through another level, from private equity or may be IPO," Shah said.
"The third plant in North East with capacity of 8-10 lakh litres milk a day will be opened in the next three years and we will also enhance the capacity of Palamner plant from the present 8 lakh to 15 lakh litres milk a day," he said.
Parag has a combined milk processing capacity of two million litres per day at its two plants in (Manchar) Maharashtra and (Palamner) Andhra Pradesh.
The Pune-based company is eyeing Rs 2,100 crore revenue during the current fiscal (2015-16). The company had posted Rs 1,500 crore revenue in 2014-15.
"We are exporting to 35 countries and look forward to exporting to Russia," he said.
Private equity arm of IDFC invested Rs 155 crore in the Parag Milk Foods earlier.
The company today announced the launch of Gowardhan range of milk in Telangana state.
