Global PE major, The Carlyle Group, has closed four growth capital investments totalling over $140 million in Asia including an undisclosed sum in Andhra Pradesh-based dairy firm Tirumala Milk Products Private Ltd. The other three investments are into two Korean firms (EO Technics Co and HKucar Global) and one Chinese company (ATMU Inc.)
On June 3, VCCircle that Carlyle would be making a Rs 110-crore investment into Andhra Pradesh-based Tirumala Milk Products. Carlyle will take a minority stake in the Rs 600-crore company started by four rural entrepreneurs nearly 10 years back, the report said.
These investments were made by Carlyle Asia Growth Capital Partners IV (CAGP IV). Since its closing at $1.04 billion in June 2009, the fund has already invested in eight companies. CAGP IV is the fourth fund managed by the Carlyle Asia Growth Capital group, a sector-agnostic growth capital fund that invests in high growth companies with strong local management and leading market positions in China, India, Korea and other key Asian markets.
Tirumala Milk Products, the flagship of Tirumala Dairy, is among the top three private dairy operations in south India growing at a CAGR of nearly 30%. The Rs 1,000-crore Hatsun tops the list while Tirumala and Heritage Dairy, in which former Andhra Pradesh Chief Minister Chandrababu Naidu’s family is a promoter, vie for the second slot. Established in 1998, Tirumala Milk Products Private Limited manufactures and markets a wide range of branded dairy products including pasteurized milk, Indian style yogurt, butter and other dairy derivative products. Veda Corporate Advisors Pvt Ltd was sole advisor to the transaction.
Wayne Tsou, Managing Director and Head of Carlyle Asia Growth Capital group (CAGP), said, “We are excited with our business momentum and the steady accumulation of a diversified portfolio in various target countries as planned. This pace reflects the proven abilities of our seasoned local investment professionals in each of the focused markets to seize attractive investment opportunities. These companies have in common strong growth fundamentals; they are the key beneficiaries of vibrant domestic growth stories in their respective countries.”
The Carlyle Group is a global alternative asset manager with $88.6 billion of assets under management committed to 67 funds as of December 31, 2009. Since 1987, the firm has invested $59.6 billion of equity in 952 transactions for a total purchase price of approximately $233.0 billion.