Keventer Agro in talks with dairy firms for takeover

The city-based Rs 1,800 crore diversified Keventer Group is preparing for fresh acquisitions in the dairy sector. Keventer Agro Ltd, a group outfit, has targeted three dairy product manufacturers for takeover for strengthening its presence in the sector, particularly in the northern region, according to Mr Mayank Jalan, Managing Director of the company.

The dairy unit under Keventer Agro Ltd currently churns out about half a million litre of milk a day. “The aim is to produce two million litres of milk every day within the next three years and for that we need to scale up our capacity either by way of acquisitions or through Greenfield expansion,” Mr Jalan said at a press conference here. At present, the company is an eastern regional dairy player.

Unlisted Keventer Agro was also close to another acquisition of a non-dairy but, food company, he said without offering details. “We are in advanced stage of negotiations with three dairy companies. We have earmarked Rs 1,200 crore for expansion in the food arena,” Mr Jalan said.

“One of the three companies is having funds crunch, while in another the promoter wants to exit. The third one has stopped manufacturing. These targets would be important for the group's geographical presence in north India,” he said. The acquisitions may complete by December-end.

Greenfield expansion

Keventer has a plan of Greenfield expansion in case its acquisition attempts do not succeed. “If the negotiations mature into deals by December, then we will start working on our Greenfield project from January,” he said. The company has identified 40 acres near Delhi, where it plans to set up a plant with a capacity of 8 lakh litres milk a day. The plant could take up to two years to become fully operational.

Food Park in Bihar

Keventer Group also has plans to develop a food park spread over 125 acres in Bhagalpur, Bihar. The park would be set up by Keventer Projects Ltd, a realty group company, in partnership with Future Ventures, Mr Jalan said. The food park would entail an investment of Rs 200 crore. In the park, Keventer Agro will set up a Rs 130-crore maize-based unit processing starch, glucose and dextrose and a cattle feed plant in collaboration with Keenan Technologies, Ireland.