IDFC private equity arm invests Rs 155 crore in Parag Milk Foods

Private equity arm of IDFC said it has invested Rs 155 crore in the Parag Milk Foods, making it the largest PE deal in the dairy sector.

Parag, which processes nearly 11 lakh litres of milk per day in two plants in Andhra Pradesh and near Pune, would use the funds to build capacities in various products, strengthen procurement network and to provide a partial exit to Motilal Oswal Private Equity which invested in the company in 2008, a joint statement said.

Parag markets its products under the “Gowardhan”, “GO” and “Pride of Cows” brands. It has achieved a turnover of around Rs 880 crore in FY12, a 40 per cent jump from the previous year.

This is the second investment in rural infrastructure and first investment in the dairy sector. It will help IDFC PE to participate in untapped potential of the rural economy.