Lactalis Enters Indian Dairy Market
Groupe Lactalis, the world’s largest dairy player, has acquired 100% of the shares in Tirumala Milk Products, the second largest private dairy company in South India.
Founded in 1996, Tirumala has a processing capacity of 1.66 million litres per day across seven plants. Since 1996, the company has been involved in the manufacturing, marketing, sale and distribution of a wide range of branded dairy products. The company is particularly known for the quality of its products. Tirumala raised equity investment in 2010 by selling a 20% stake to Carlyle Group, a global alternative asset manager.
Financial details of the Lactalis acquisition were not released but the deal is believed to be worth between $250 million and $300 million. The transaction marks Lactalis’ entry into India– the world’s largest producer of milk and milk products. The deal marks the largest dairy transaction in India.
Shankar Narayanan, managing director of Carlyle India, says: “During Carlyle’s investment, the company’s revenues grew two and a half times and profits more than quadrupled. We wish the company continued success going forward.”
Founded in France 80 years ago, Groupe Lactalis is globally the largest dairy player, employing more than 54,000 people and operating in 70 countries through 200 factories. Lactalis develops well-known international brands such as Président, Galbani and Parmalat.
