Kwality gets an upper hand, KKR to infuse 520 crores

Kwality Ltd., India’s largest and fastest growing private dairy company, has informed the exchanges that it has received capital commitment of upto Rs 520 crore via structured finance from KKR India, one of the biggest Private Equity fund. The company will likely use capital for its growth and expansion plans as the company is rapidly shifting its business model towards B2C/retail segment. ICICI Securities Primary Dealership Ltd., is the financial advisor to the transaction.

The proceeds shall be utilised to fund capital expenditure for further strengthening milk procurement infrastructure solely for high-margin Value-Added Product categories including cheese, paneer, table butters, tetra-packs, flavoured milk and yoghurt among others. The company intends to roll out a series of such products in the near future.

The Company is in the process of launching value-added products such as tetra pack milk, cheese in numerous variants, paneer, and table butter. With its wide distribution network, the company caters to its retail customers and supplies dairy products to institutional customers directly, which includes leading MNCs and Indian companies. Kwality Limited, was conferred the Dun & Bradstreet Corporate Award 2014 as the top Indian Company under the sector ‘Food & Agro Processing’.

Incorporated in 1992, Kwality Limited is India’s largest and fastest growing private dairy company. With six milk processing units in Uttar Pradesh, Haryana, Uttarakhand, and Rajasthan, it has milk processing capacity of over 3.2 Mn litres/day. The product range includes milk, ghee, cow ghee, Livlite, flavoured milk, curd, skimmed milk powder, dairy creamer, Chaach, Lassi and other dairy products under its brands ‘Dairy Best’, KDIL’s Kwality, Good-Health, Wake Up, and Kream-Kountry.

On the other hand, the shares on July 13 will be in the limelight. The stocks as at 9.15 am have opened 4 per cent higher. The shares in the last 1 year have given a return of more than 56 per cent.