Delhi-based dairy company Kwality Ltd, formerly known as Kwality Dairy (India) Ltd, has acquired fixed assets of Varshney Bandhu Foods Pvt Ltd (VBFPL) for an undisclosed amount, according to a stock market disclosure.
Started in 2005, VBFPL is headquartered in Delhi and has a manufacturing plant in Bulandshahr in Uttar Pradesh. It specialises in the manufacturing of dairy products under the brand name, Meera Premium. It is run by founders Anup Kumar Varshney and his brother Sanjay Kumar Varshney.
It is not immediately clear if the firm will continue to sell its products through a sourcing contract with Kwality or some other vendor.
Kwality, which clocked revenues of Rs 3,930 crore with net profit of Rs 106 crore for the year ended March 31, 2013, has products like ghee, curd, butter, skimmed milk, instant dairy creamer, sweet and flavoured milk. The milk is procured through milk collection centres situated at Fatehabad and Rania.
The dairy sector is certainly seeing a lot of activity both from M&A and private equity investment. Last month, Chennai-based private sector dairy firm Hatsun Agro Product Ltd announced the acquisition of milk dairy products manufacturer Jyothi Dairy where it will invest Rs 65 crore to buy the stake and make fresh investment in the acquired firm.
In February this year, Nestle had entered into an agreement to acquire 26 per cent stake in Indocon Agro and Allied Activities Pvt Ltd for an undisclosed amount.
Hyderabad-based Tirumala Milk Products Pvt Ltd renewed its stake sale plans after talks with French-foods major Danone was called off earlier this year.
IFC backed Modern Dairies while Prabhat Dairy raised private equity funding from Rabo Equity Advisors last year.
(Edited by Joby Puthuparampil Johnson)