Dairy processor Parag hopes to raise funds

Dairy processor Parag hopes to raise funds

Indian dairy manufacturer Parag Milk Foods is preparing to launch an IPO.

Speaking to just-food on the condition of anonymity, a company official said: "We are actively looking to enter the stock market to generate funds. The funds will be used for our expansion plan."

However, the official added: "We are also looking for other sources, such as loan, funding from other financial institutions to fund our expansion plan." The official did not disclose how much Parag is hoping to raise.

The company operates two plants, one at Manchar in Pune and another at Palamner in Chittoor, which it plans to expand with the funds.

Motilal Oswal Private Equity, IDFC and IFC together holds shares worth 45-50% of the business. The balance is owned by investor Devendra Shah.

In April 2015, it was reported the company is planning to raise $60-75m from a private-equity firm over three years. Last year, it was reported Parag was in talks to sell a 65-70% stake to FrieslandCampina but a deal never materialised.

Parag markets products, including milk, ghee, butter and cheese, under the Gowardhan brand.