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Ranchi-based HR Food Processing Pvt Ltd, which manufactures and markets dairy products under the Osam brand, has raised a Series B fund of ₹45 crore.
The round was led by Lok Capital-advised Growth Catalyst Partners and existing investor Aavishkaar India II Company Ltd.
HR Food, which began commercial operations in May, had raised the first round of funds (₹15 crore) in 2013.
According to Abhinav Shah, co-founder and CEO, HR Food, the funds will be used for expansion of existing capacities.
The company currently has a Ranchi unit with a daily processing capacity of 80,000 litres of milk. This presently operates at around 50-60 per cent capacity. The firm has also acquired another unit at Jamshedpur. This second unit, with a daily processing capacity of 1,20,000 litres of milk, is currently being refurbished and is expected to start commercial production by April 2017.
“Apart from the Jamshedpur unit, the funds will be used to ramp up the distribution network and expansion.”
ExpansionAt present, the firm operates in 18 of the 24 districts of Jharkhand through 100-plus distributors and over 3,000 retailers.
The retail presence is spread across both kirana stores and modern retail outlets. The company expects to be present across all districts of Jharkhand by the first part of next year, Shah said.
This will then be followed by a foray into Bihar.
The company is targeting a turnover upwards of ₹100 crore by March 2018.
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