Creamline Dairy closing in on Rs 100-cr private equity deal

Our Bureau Hyderabad | Updated on February 24, 2011

Mr K. Bhaskar Reddy, Managing Director of Creamline Dairy Products Ltd, addresses a press conference at the silver jubilee of Jersey brand milk and milk products in Hyderabad on Thursday. He is accompanied by Mr M. Gangadhar (left), Director (Finance), and Mr C. Balraj Goud, Director (HR). Photo by P.V. Sivakumar   -  Business Line

Creamline Dairy Products Ltd, which sells Jersey brand of dairy products in the South, is in advanced talks with a private equity firm to raise Rs 100 crore.

“We have lined up investments to the tune of Rs 150 crore in the next four years to double our production to 12 lakh litres from six lakh litres. We will use internal accruals and debt to raise the remaining fund,” Mr K. Bhasker Reddy, Managing Director of Creamline Dairy Products, told Business Line.

“We are going to close the financial year 2010-11 at Rs 600 crore. We are targeting to reach Rs 750 crore in 2011-12 with production of 7.4 lakh litres.”

The company will focus on increasing the share of its value-added products by 1.5 per cent annually to reach 16 per cent by 2015. The share now is 9 per cent.

It will introduce products with longer shelf life. With regard to the geographical reach, the 25-year-old company has plans to launch its products in Chhattisgarh and Orissa.

“Bulk of revenue comes from Andhra Pradesh, while Tamil Nadu, Karnataka and Vidarbha too contribute significantly. We are going to strengthen our presence in these three markets,” Mr Reddy said.

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Published on February 24, 2011
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