Homegrown PE fund Kedaara Capital has acquired a majority stake in Dairy Classic Ice Creams (Dairy Day), a leading ice cream brand in South India. The Rs 1200-crore ($150-million) investment will also provide full exit to Motilal Oswal Private Equity and other Angel Investors, said sources. The company has not disclosed the investment details.
Along with acquiring Motilal Oswal PE’s stake, Kedaara has also invested primary capital into the company, added sources.
EY acted as the exclusive investment banker on this transaction.
Bengaluru-based Dairy Day has established a strong presence in the states of Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra with over 50,000 retailers. Dairy Day will soon be adding 1.5 lakh litres per day production capacity to its existing two lakh litres per day capacity, and it has achieved a revenue growth of 30 per cent compounded annual growth rate (CAGR) over the last decade, it added.
“Given the convergence of values and aspirations, we are confident Kedaara will help us deliver on our vision to make Dairy Day one of India’s most loved ice cream brands. Their wealth of expertise and in-depth retail and consumer experience will be invaluable as we expedite our growth. We are confident of setting up world-class production facilities in various locations in the coming years,” said M.N. Jaganath, Managing Director and CEO
“Ice Cream is one of the fastest growing categories within the entire food & beverage segment. We are excited to partner with M.N. Jaganath, A. Balaraju, and rest of the team to help them unlock Dairy Day’s full potential, and further strengthen its leadership position,” said Sunish Sharma, Founder and Managing Partner of Kedaara Capital.
Kedaara manages over $3.7 billion through investments in several market leading businesses across a variety of sectors including consumer, financial services, pharma/healthcare, technology/business services and industrials.