ChrysCapital invests $44m in Indian FMCG CavinKare

CavinKare started as a personal care brand, but has diversified into dairy, snacks, food and beverages.

In March, C.K. Ranganathan, the company's chairman and CEO, said he would be diluting a 10% stake for INR3.5 billion to pay off debts and fund expansion. CavinKare intends to expand its brand portfolio across different markets, he added in a statement.

ChrysCapital Managing Director Gurpreet Kohli will join the company board. He said: "The fast-moving consumer goods market in India is looking at exponential growth with the size of demographic potential. We chose CavinKare because it has high transparent business practices and is innovative and differentiated in its approach in building product categories."

CavinKare was also reported to be in talks with Everstone Capital and Apax Partners, to raise money and retire debt of around INR3.5 billion. The company reported INR10.2 billion in revenue for the 2010-2011 fiscal year.

Recent private equity investment in the Indian consumer segment includes the Government of Singapore Investment Corp. (GIC) and Baring India Private Equity's purchase of a 4.8% stake in Marico, a manufacturer of personal care products, for INR5 billion ($97.7 million).

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• Topics
• South Asia
• Consumer
• Expansion
• India
• ChrysCapital Management
• Consumer
• Growth capital