MOVCAPL invests Rs 60 cr in Parag Milk Foods
Summary
MUMBAI: Funds managed and advised by Motilal Oswal Venture Capital Advisors (MOVCAPL) and its associates, have invested Rs 60 crore in Parag Milk Foods, a rapidly-growing dairy and selling under the brand Gowardhan.The amount will be used by Gowardhan for its capacity expansion, along with branding and marketing initiatives, a press release issued on Wednesday.Maharashtra-based Parag is one of the few players that uses 100 per cent cow milk for all its products. The companys product portfolio includes liquid milk and various dairy products such as milk powder, cheese, ghee, butter, cream, curd, buttermilk and gulab jamun mix.MOVCAPLs Chairman, Raamdeo Agrawal, said that "India is rapidly moving from a USD 1 trillion economy to a USD 2 trillion economy with steadily-increasing disposable incomes. Rising population coupled with increasing consumerism will boost demand for dairy products. ""Companies like Parag, which have established strong procurement practices and internationally accepted quality products, will hugely benefit from this upsurge in consumerism," Agrawal added.Parags Chairman, Devendra Shah, said that "the company would be investing around Rs 160 crore over the next 2-2.5-years expanding its capacity to procure and process around 20 lakh litres per day and Rs 50 crore lending to farmers for backward integration as well as for development of the cow and dairy farm. "Mumbai-based investment bank, Ladderup Corporate Advisory Pvt Ltd acted as the exclusive financial advisors to Parag for the deal.