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The Chennai-headquartered fast-moving consumer goods major CavinKare Pvt Ltd has announced a private-equity investment of Rs 250 crore from ChrysCapital, a Mauritius-based firm in a structured deal. JM Financial acted as the sole financial advisor to CavinKare. This deal was reported by Business Line on May 23.
However, the company did not mention anything about the equity dilution.
A press release from the company says this investment will be used to strengthen and expand its existing brand portfolio ranging from shampoos, fairness cream, hair colours, deodorants, dairy, snacks, foods and beverages.
Commenting on the development, C.K. Ranganathan, Chairman and Managing Director of CavinKare, said the investment from ChrysCapital will give a strong financial boost to the Company, given the rapid expansion and diversification undertaken in the last few years. “Our objective is to rapidly grow the company’s brand portfolio by a few notches across different markets,” he said in a statement.
Gulpreet Kohli, Nominee of ChrysCapital on the CavinKare board, said, “ChrysCapital is very optimistic about its latest investment. The FMCG market in India is looking at exponential growth with the size and demographic potential. We chose CavinKare because it has high quality, system-driven and highly transparent business practices and is innovative and differentiated in its approach in building product categories.”
With a turnover of Rs 1,200 crore, CavinKare has brands in personal care, dairy, snacks, foods and beverages. The brand portfolio consists of shampoos (Chik, Meera and Nyle), fairness creams (Fairever), deodorant and talc (Spinz), hair colours (Indica), dairy (Cavin’s), food and snacks (Ruchi, Chinni’s & Garden), and beverages (Maa).
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