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Parag Milk Foods, a Maharashtra-based dairy firm, is planning to raise ₹400-500 crore in the next three years for its pan-India expansion.
The expansion includes setting up a processing plant with a capacity of 8-10 lakh litres of milk a day in the eastern or north-eastern part of the country.
It has so far received investments of over ₹300 crore from IFC, IDFC and Motilal Oswal. While IDFC put in ₹150 crore, IFC chipped in with ₹90 crore and the latter ₹75 crore.
The firm, which set up its second dairy plant at Palamaner in Andhra Pradesh with an investment of ₹200 crore, is looking at similar investments in the third plant. It has a facility at Manchar in Maharashtra.
The company, however, has not decided yet to raise the funds through the PE route or through an initial public offering. “We are looking at a time frame of three years to raise the funds. Our internal accruals would do for the ongoing expansion plans,” Devendra Shah, Chairman of Parag Milk Foods, said. The firm targeted a turnover of ₹2,100 crore in 2015-16 against ₹1,450 crore last year.
Addressing a press conference here on Tuesday, he said the ₹80,000-crore dairy market in the country offered good scope for value-added products.
“We are aiming to become a top-5 dairy firm in the next three-five years. We are focused on valued dairy products that contribute 80 per cent of the turnover,” he said. The firm targets a contribution of ₹200 crore from Andhra Pradesh and Telangana.
Parag Milk Foods’ Chief Marketing Officer Mahesh Israni said that the company planned to increase its capacity to three million litres a day in the next three years.
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