Carlyle exits India's Tirumala Milk Products to trade buyer
French dairy group Groupe Lactalis has acquired Tirumala Milk Products for a reported sum of $250–300 million, allowing The Carlyle Group to exit its 26.38% holding in the South Indian dairy producer.
Carlyle invested $22 million in Tirumala in May 2010, valuing the company at $85 million. The private equity firm has generated a money multiple of at least 3x, based on the reported selling price.
Tirumala sells a wide range of dairy products, including fresh milk, milk powder, butter and ice cream. It has production centers in the southern states of Andhra Pradesh, Karnataka and Tamil Nadu, and plans to expand to other parts of India.
The company's turnover for the year ended March 2013 rose 21% to INR14.24 billion.
India's organised dairy sector, worth about $10 billion in 2012-2013 according to Rabobank, has attracted several investors. In 2012, IDFC Private Equity invested INR1.55 billion ($28.7 million) for a minority stake in Parag Milk Foods as Motilal Oswal Private Equity exited its stake in the company.
Last year, Rabo Equity's India Agribusiness Fund has invested another INR800 million ($12 million) in Maharashtra-based Prabhat Dairy, alongside French development finance institution Proparco's INR600 million commitment.
Danone and TPG Capital were previously reported to be in talks to acquire Tirumala.
India's dairy market is expected to grow at about 13-15% annually till 2019-2020.
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