Chennai-based consumer goods firm Cavin Kare is planning to invest around Rs 500 crore over the next three years. The company also said it would go in for an IPO to support some of its “big” acquisition plans.
Cavin Kare chairman and managing director CK Renganathan said the the investment would be funded through debt and internal accruals to enhance capacity at its manufacturing units and for acquisitions.
“The company is looking at some good, big acquisition opportunities in FMCG and personal care segments. During that time, we will go in for an IPO too,” he said.
Meanwhile, the company is in final stages of closing a Rs 50-crore acquisition deal, which would allow it to foray into the ready-to-eat business.
Renganathan said they had recently acquired four-year-old Puducherry-based Padma Thermal Care, which produces 12,000 tonnes of personal care products every year. Its Himachal Pradesh facility, which is currently running with a 42,000-tonne capacity, would soon touch the full capacity of 60,000 tonnes.
Similarly, the company is planning to increase it milk production capacities at its two plants in Tamil Nadu to 2 00,000 liters per day from 42,000 litres. The company had invested Rs 60 crore for the capacity enhancement.
“We are also taking our juices brand MA national for which we would set up a manufacturing facility in the north,” said Renganathan. The company has a manufacturing facility near Hyderabad.
The company is also targeting to double its exports this year by reaching out to new overseas markets like the US, Europe and Australia. It currently caters to neighbouring countries. Last year, exports accounted for 5-7 per cent of the total turnover, which stood at around Rs 700 crore. For the current financial year, the company has set a target of Rs 1,000 crore .
Cavin Kare recently opened a food chain — CK’s — in Puducherry on a pilot basis. It also launched a spa at Chennai under the brand Limelight.
