Godrej Agrovet today said it has raised its stake in Creamline Dairy Products for Rs 150 crore, thus acquiring a controlling stake in the dairy firm.
Godrej Agrovet (GAVL), a subsidiary of Godrej Industries, was previously holding a stake of 26 per cent in Creamline Dairy Products Ltd.
Creamline is the prominent dairy company in South India with significant operations across Telangana, Andhra Pradesh, Tamil Nadu, Karnataka and Maharashtra. It also has six certified milk processing plants having a capacity of 7.63 lakh litres per day.
"We have been shareholders of Creamline for the last 10 years...As the company embarks on its ambitious future growth plan we believe GAVL will be able to bring in significant value to the business by helping it develop successful brands and add more value added products to the current portfolio," GAVL said in a regulatory filing.
"We have acquired additional 25 per cent stake in Creamline Dairy for about Rs 150 crore," GAVL Managing Director Balram Singh Yadav told PTI.
The company has acquired the stake through a mix of primary infusion of Rs 51 crore and purchase of shares worth Rs 100 crore from the existing shareholders of Creamline Dairy, he said.
Yadav further said the existing promoters will manage the company and the primary infusion would be used for expansion of the dairy capacity in South India.
Creamline, which sells its products under the brand name 'Jersey', is in process of intensifying its procurement operations and has set up three processing units along with facilities for value added products.
"...We think Godrej Agrovet will add significant value to our business through their long association with Indian dairy farmers..Creamline expects to close FY 2015-16 with more than Rs 1,000 crore in sales," Creamline Dairy Managing Director K Bhaskar Reddy said.
GAVL is subsidiary of Godrej Industries and is one of the country's largest animla feed firm.
