NEW DELHI: Dairy firm Kwality Ltd has raised Rs 300 crore from private equity firm KKR India and secured an additional capital commitment of Rs 220 crore to fund its expansion plan and repay debt.
“Kwality Ltd has received capital commitment of up to Rs 520 crore via structured finance from KKR India…to fuel its aggressive growth plans as the company continues to rapidly shift its business model towards B2C/retail segment,” the company said in a BSE filing.
When contacted, Kwality Director Sidhant Gupta said the company has already raised Rs 300 crore from KKR India and the remaining amount would come from the company at a later stage.
The funds raised would be used for expansion and part repayment of debt, he added.
“We are at a critical stage of growth where we are shifting our business model from B2B to B2C, which encompasses revamp of all business functions across the value chain… This investment would support a giant leap in this direction, enabling faster growth and achieving high profitability,” Kwality MD Sanjay Dhingra said.
The proceeds would be used to strengthen milk procurement infrastructure solely for high-margin value-added product categories including cheese and paneer among others, Dhingra said, adding that the company would roll out a series of such products in the near future.
“We believe that Kwality is well positioned to shape the future of the dairy industry in India and it holds immense potential to deliver to all its stakeholders,” he added.
Incorporated in 1992, Kwality has six milk processing units in Uttar Pradesh, Haryana, Uttarakhand, and Rajasthan with a capacity of over 3.2 million litres/day. It sells products under different brands including ‘Dairy Best’.
The company has signed Bollywood actor Akshay Kumar as its brand ambassador.
Kwality’s share price rose by 3 per cent to Rs 114.60 apiece on the BSE.
