Indian dairy manufacturer Creamline Dairy Products has told just-food it is seeking foreign investment.
Reports in India have linked Nestle, Danone and Fonterra to a possible stake in the business.
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A company official for Hyderabad-based Creamline confirmed it is looking for investment from outside India.
“We are in the process of finding foreign partners for the growth of the business,” he said.
According to the official, 49% of the company is up for sale, including a 26% stake owned by Mumbai-based agribusiness Godrej Agrovet.
The official refused to confirm reports the prospective international investors include Nestle, Danone on Fonterra. However, he added: “We have given the mandate to some people who can find investors in our company.”
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By GlobalDataCreamline, with a milk processing capacity of 685,000 litres per day, generated sales of US$72m in 2010 and has been expanding. Company documents cite a revenue target for calendar year 2013 of US$169m. The company markets liquid milk flavoured milk, curd, cottage cheese and butter under the Jersey brand in the Indian states of Andhra Pradesh, Tamil Nadu, Karnataka and Maharashtra.
Godrej Agrovet refused to comment on the potential sale, branding the claims that its stake could be sold as “speculative”.
According to a Creamline note, Godrej invested in the dairy company in 2005, with the goal of creating a backward integration chain incorporating dairy farmers.
