Carlyle has invested Rs.110 Cr for a minority stake in Andhra’s Tirumala Milk Products.

Private equity giant Carlyle has invested the amount through its fund - Asia Growth Partners IV.

This is Tirumala’s first round of funding.

The funds will be utilized by Tirumala for its production-related infrastructure, distribution and brand building to expand its presence in the southern markets and also to enter new markets like Maharashtra. It is also planning to launch new products and is focused in building its brand value as part of its growth strategy.

Veda Corporate Advisors Pvt Ltd is the sole advisor to the transaction.

Founded in 1998 by four people, Tirumala Milk Products Pvt Ltd is a Rs 600 Cr flagship company of Tirumala Dairy engaged in manufacturing various dairy products. In November 2007, Tirumala Dairy Pvt Ltd and Tirumala Milk Products Pvt Ltd, which were earlier separate entities, were merged as a single entity, Tirumala Milk Products (P) Ltd, to achieve greater efficiencies. It supplies to various markets in Andhra, Karnataka and Tamil Nadu.

It is growing at a CAGR of nearly 30%. For 2008-09, it posted a turnover of Rs.470 Cr against Rs.373 Cr in 2007-08.

In Andhra Pradesh, Hatsun is the major player in dairy followed by Tirumala and Heritage Dairy.

Transaction Reference: Vccircle

In 2008, Carlyle Group formed $1.04 bn Asia Growth Partners IV fund that focused on private high groth companies with outstanding local management in China, India, Japan and Korea.

Recently, Carlyle Group raised $2.6 bn for its third Asia focused PE fund Carlyle Asia Partners III to invest in India, China, South Asia, Korea and Australia.

Carlyle established its Asian PE operation in 1999 and has made 21 investments in India.

Carlyle is changing its investment focus in India and will now focus on smaller deals instead of big ticket deals. The fund will not invest in liquor, tobacco, alcohol and real estate.

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KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
07/05/10	Tirumala Milk Products - Carlyle	Private Equity	Carlyle Growth VII	11.86

 

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  Profiles

Fund
Name	Corpus	Target Sector	Website	KeyContact
Carlyle Asia Growth Partners III	680	BFSI Pharma Education Food & Beverage Media	http://www.carlyle.com/Fund/Growth Capital/Asia Growth Capital/Carlyle Asia Growth Partners III/item9190.html	Shankar NarayananManish GaurNikhil MohtaKapil ModiMahesh Parasuraman

Company
Name	Promoters	Office	Competitor	Website
Tirumala Milk Products Private Limited	Bolla Brahma Naidu Danda Brahmanadam Battini Nageswara Rao	D.No.12-8-8, Narasaraopet, Guntur Dist	Schreiber Dynamix Daries Limited (Dynamix Dairies Industries Limited) Creamline Dairy Products Limited	www.tirumalamilkproducts.com

  Advisor

Veda Corporate Advisors

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