TVS, IFC back Dunar Foods with $25m

TVS contributed $10 million of the capital via the INR6 billion TVS Shriram Growth Fund IA, while IFC supplied the remainder.

Headquartered in Karnal, Haryana, Dunar engages in the procurement, processing and supply of basmati rice, with production facilities in Haryana, Punjab, Madhya Pradesh and Uttar Pradesh. It aims to double its processing capacity over the next three years.

"We believe in the company's growth potential, because of the global branded rice business and the opportunity to scale the Indian retail business," said TVS Managing Director Gopal Srinivasan.

Prior to the deal, Dunar's share capital was divided between promoter and managing director Surender Gupta and his family (63%), his sister-in-law Kanta Gupta (28%), and Gupta's mother, as well as the company's management. Surender Gupta's father established Dunar more than 30 years ago.

Last May, IFC revealed it was planning to invest $30 million in the rice processor through a mix of equity and debt.

It was announced earlier this week that IFC had jointly invested $50 million in Indian non-banking finance company Au Financiers, alongside Warburg Pincus. IFC's participation means its stake in the company will remain the same

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• Topics
• Consumer
• Expansion
• South Asia
• India
• IFC
• Consumer
• Growth capital
• Warburg Pincus Asia