In an effort to expand its product portfolio, the Rs 1,800-crore Keventer Group is planning acquisition of two Uttar Pradesh based skimmed milk-makers.

The acquisitions will be part of the group's Rs 350 crore expansion plan. Plans are also afoot to add cheese in product portfolio and scale up milk production to about two million litres a day.

“Foraying into the skimmed milk powder segment is our focus area. We have short-listed two factories in Aligarh and Bulandshahar in Uttar Pradesh and are in final stages of negotiations. We hope to firm up deals by November this year,” Mr Mayank Jalan, Managing Director, Keventer Agro Ltd, told Business Line.

Finance matters

The total acquisition value of both these facilities – manufacturing skimmed milk powder - would be close to Rs 210 crore.

In addition, Keventer would invest Rs 110 crore for the up gradation of the facilities.

The proposed foray would also add to their profitability , as margins on skimmed milk powder are generally higher than that on liquid milk, he pointed out.

Alternate plan

Keventer Agro has an alternate plan of greenfield expansion in Delhi, in case its acquisition attempts do not succeed.

“We have an alternate plan for putting up a skimmed milk factory near Delhi at an estimated investment of about Rs 300 crore,” Mr Jalan said.

The company was exploring the market for high-end cheese in the country.

“We are in talks with an Irish company for adding high-end cheese to our product portfolio,” he said.

Keventer would also look at manufacturing chenna (paneer) to be supplied to the sweetmeat shops.

“We have been working on it for the last two years and we are hopeful of launching it soon,” he said.

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