IFC to invest $17m in India's Parag Milk Foods
Indian dairy company Parag Milk Foods is set to receive $17 million from International Finance Corporation (IFC). The capital will be used to expand milk processing projects in the regions of Manchar and Palamner.
Last September, Parag received a INR1.55 billion ($28.3 million) investment from IDFC Private Equity. This facilitated a partial exit by Motilal Oswal Private Equity, which invested $14.1 million in the company four years ago for a reported 10-12% stake.
IDFC PE told AVCJ that Parag is attractive because it is one of few players in a fragmented market with a genuine chance of achieving scale.
Parag is one of India's largest private dairy producers. According to an IFC disclosure, the company wants to expand into value-added products, strengthen existing operations through plant automation, refurbish of old manufacturing areas and enlarge its procurement and distribution networks.
Parag currently produces 2 million liters of milk per day - 1.2 million liters at its facility in Manchar, and another 800,000 liters at Palamner. The company wants to more than double its capacity to 5 million liters.
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