The French company Lactalis Group, the world’s largest food product company with sales of €15 billion annually is close to completing a majority acquisition of South India’s second largest dairy product producer Tirumala Milk Products for a reported $300 million. There has been no divulgence as to the extent of the dilution however it is reported that the private equity firm Carlyle will sells its 20% holding and four other promoters would sell their 50% holding giving Lactalis a 70% ownership. Upon completion, the deal would represent a four-fold jump in valuation for Tirumala. According to Assocham, the Indian dairy industry is the world’s largest accounting for 20% of the world’s production and according to Rabobank the Indian dairy sector is set to grow at a compounded annual growth rate (CAGR) of between 13%-15% until 2019-2020.
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