Dairy firm Kwality Ltd has secured up to Rs 520 crore investment from private equity firm KKR India to fuel its growth plans by entering new product categories.
"Kwality Ltd has received capital commitment of up to Rs 520 crore via structured finance from KKR India..To fuel its aggressive growth plans as the company continues to rapidly shift its business model towards B2C/retail segment," the company said in a BSE filing.
"The proceeds shall be utilised to fund capex to further strengthen milk procurement infrastructure solely for high-margin value-added product categories including cheese, paneer, table butters, tetra-packs, flavoured milk and yoghurt among others. The company intends to roll out a series of such products in the near future," it added.
Kwality said funds will also be deployed for part repayment of debt to improve cash flows and augment brand building activities.
"We are in a critical stage of growth where we are shifting our business model from B2B to B2C, which encompasses revamp of all business functions across the value chain..This investment would support a giant leap in this direction, enabling faster growth and achieving high profitability," Kwality MD Sanjay Dhingra said.
The dairy firm said it is taking steps including appointing firms such as McCann, Zenith Optimedia and Digital Quotient for brand building initiatives and signing actor Akshay Kumar as its brand ambassador.
It has also roped in EY as its IT transformation partner.
ICICI Securities PD acted as the financial advisor for the transaction.
