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The private equity arm of Kotak Mahindra would invest around $10 million in Hyderabad-based Heritage Foods, reports The Economic Times. Heritage is promoted by Chandrababu Naidu, politician and former chief minister of Andhra Pradesh. The deal was signed on Monday evening, the report added, quoting sources.
Heritage has informed stock exchanges that it would hold its board meeting on Friday, January 4, to consider the proposal of issuing equity shares/warrants on preferential basis to promoters or non-promoters. The Kotak investment is to be decided in this meeting.
The proceeds of the fund would be deployed to expand its retail format 'Fresh@' stores from the present 50 to 100. The store plans to expand the footprint and look at other markets in mid term. They currently have stores in Chennai, Bangalore and Hyderabad, and sell 50 grocery products like cereals, pulses and staples under brand name Farmers Pride. The company is primarily into milk and milk products and has established a network of procurement and chilling plants across South India.