100-year old Kalimark to raise Rs 80 cr from PE investors

Fund raising to support company Rs 150 crore investment in SriCity

The century-old Kalimark is planning to raise around Rs 80 crore to support company's Rs 150 crore investment plan at Sri City, Andhra Pradesh. The soft drink maker also set a target to become a Rs 1,000-crore company by 2020 and to enter nearby markets and ready-to-eat segment.

Kalimark and Bovonto are the two key brands for the company. Other brands include Trio (orange flavour), Solo (Lemon), Ginger, Frutang (Mango) and today launched Vibro (Paneer Soda).

Today, of the around Rs 160 crore turnover, around 95 per cent comes from Bovonto.

K P R Dhanushkodi, managing director, Kali Aerated Water Works (P) Ltd said that by 2020 the company is targeting Rs 1,000 crore turnover.

 

"We have a very good infrastructure and modern plants that function using the latest technology and equipment. We believe in investing a lot into our infrastructure and provide our distributors with generous margins," he said.

J Ramesh, director - finance, Kali Aerated Water said that the proposed investment will be funded through internal accurals and company also in the final stage of closing a deal with private equity investors to raise around Rs 80 crore in the form of equity.

N Arun, director, Kali Aerated said that the new facility at Sri City will meet 50 per cent of Tamil Nadu's demands and will also cater to demands from the neighbouring states of Andhra Pradesh and Karantaka, where the company is foraying into.

Tamil Nadu is the key market for these brands with 95 per cent of the sales coming from the state and amongst the brands.

The origins of Kalimark were at a small village called Virudhupatti currently known as Virudhunagar. In 1916, PVSK Palanaiappan Nadar and his wife Unnamalai Ammal started the venture of.

To mark the centenary year, the company launched its latest offering Vibro, a Paneer Soda, a carbonated softdrink with rose flavour, that the company expects to be a big hit. In 2017, it is planning to foray into energy drink.

On the anvil are plans to expand to Chittoor, inner Karnataka and Kerala by the end of 2016 ad move into SriCity, Andhra Pradesh by 2017.

The company has acquired 11 acres of land and plans to invest Rs 150 crore in the facility. The capacity will cater to Tamil Nadu, new markets in India and also export markets.

New flavours, tin containers and ready-to-eat are also being planned for export markets.