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Dinshaws Dairy solicits Rs.

2000 Crore valuation


Nitesh Roy
25th November 2015
Nagpur, Maharashtra : Dinshaws Dairy Foods Ltd.,one of Indias leading milk and dairy product
manufacturer is all set for a Rs.2000 Crore valuation. The legacy of this 82 year old, Bapuna Group
owned firm is all set to ascertain the new brand value. With present valuation of Rs.2300 Crore, private
investors and many consumer companies have envinced huge interest in this vaulation process. IMTs
sources who are three people with direct knowledge of the negotitians confirm the devlopments.
UK based Actis LLP and Apax Partners LPP along with other investors are in constant communications
with the management at Dinshaws and Moelis & Co. for carrying out due diligence. Moelis & Co. are
apointed as the official advisiors for Dinshaws. One of our sources mentioned that at present majority of
stakes are considered for sale but only at a lucrative price.
Reasons for the valuation:
Although the reasons for sale could not be confirmed yet but speculations are made regarding the same.
Offlate growing management diferences and dwindling succession issues are some of the most
prominent reasons as per one of the bankers. However when contacted, Jimmy Rana, managing
director, Dinshaws Dairy Foods Ltd. said, We keep evaluating various fund raising options, including
debt and equity, from time to time to support our growth plans. As a company policy, we do not
respond to market speculation.
About Dinshaws Dairy Foods Ltd.:
Dinshaws history dates back at 1932, when two brothers Dinshaw and Erachshaw Rana started as a
small dairy business in Gittikhadan, 2.4 kms from Nagpur in 1933. Between 2002 and 2010, it entered
into other products such as paneer, ghee, curd and milk powder. This was also the same year in which
Dinshaws made an MOU with Bapuna Group for 50% stake in the company.
Dairy Industry in India:
According to a study made by National Dairy Development Board of India in 2013, the Indian dairy
industry is set for high growth in the next eight years, with demand likely to reach 200 million tonnes by
2022. Presently, only 20% of milk production comes from the organised sector comprising cooperatives
and private dairies. the demand for milk is expected to increase at a compounded annual growth rate of
5% from 138 million tonnes in 2014 to 200 million tonnes in 2022. "In recent years, India's dairy market
has generated huge amount of interest among private equity as well as strategic investors. We have also
witnessed a significant number of international dairy players looking to invest in the country," said
Nishesh Dalal, partner, deal advisory, at KPMG in India.
Dinshaws now has a large dairy business with a handling capacity of 500,000 litres per day. It has a
presence in western, central and some part of northern India. Maharashtra, Gujarat, Goa, Andhra
Pradesh, UP, Karnataka, Rajastan, MP, Chhattisgarh, Orissa, and Jharkhand are the states where the
hold have been strong in the past years.

Quotes and Data Refrences:

http://bapunagroup.com/dinshaws-dairy-foods-ltd/
http://www.dinshaws.co.in/history.aspx
http://articles.economictimes.indiatimes.com/2015-11-21/news/68462120_1_jimmy-rana-actistirumala-milk
http://www.livemint.com/Companies/hjKuKrUJlZd2mQsDms JdNN/ Dinshaws-Dairy-plans-to-raise100-million-from-PE-funds.html
http://www.bloomberg.com/researc h/stocks/private/snaps hot.asp?privcapId= 40274809
http://www.wikihow.com/Sample/Press-Release