Motilal Oswal Private Equity Invests INR 1,100 million in Dairy Classic Ice Creams Pvt. Ltd.
19 October 2016, Mumbai: MOPE Investment Advisors Private Limited (MOPE) has announced that its India Business Excellence Fund – II and India Business Excellence Fund – IIA, have invested INR 1,100 million for a minority stake in Dairy Classic Ice Creams Pvt. Ltd. (Dairy Day), a Bengaluru based company engaged in the business of manufacturing and selling of ice creams and frozen desserts. This is the first round of private equity investment in the Company.
Established in 2003, Dairy Day is one of the top 5 ice cream brands in South India with a strong presence in Karnataka and Tamil Nadu. It operates through a very strong supply chain network, with more than 15,000 retailers in these regions. The company has a centralized, state of the art manufacturing facility near Bengaluru and offers a complete product basket of ice creams and frozen desserts.
Mr. Vishal Tulsyan, Managing Director and CEO of MOPE “We are pleased to be part of, what we believe is one of the fastest growing ice cream brands in the country. The brand ‘Dairy Day’ has become synonymous with value for money products and remains an endearing brand the customers. We believe that the company is well positioned to benefit from increasing acceptance of ice cream as dessert, heightened brand awareness, higher spending capabilities and improving refrigeration infrastructure. Dairy Classic is a fairly young company and the management has shown exceptional execution capabilities by scaling the brand where it is today, in such a short time span.”
Mr. Jagannath M. N. and Mr. A Balaraju, Directors of Dairy Classic said, “Partnering with Motilal Oswal Private Equity will help Dairy Day to achieve its multi-pronged goals of becoming one of the leading ice cream brands in the Southern India while continually improving its market share. We strongly believe that MOPE is one of the premier private equity fund managers in India. Their experience of managing several companies across sectors will bring a lot of value to us as we endeavor to build a world class organization.
The funds will be used for capacity expansion in Tamil Nadu and Karnataka, deepening the distribution network and brand-building which will help us serve our customers better and create value for all the stakeholders of the Company.”
EY (Ernst & Young) acted as an exclusive financial advisor to Dairy Classic for this transaction.
About Motilal Oswal Private Equity Business:
MOPE Investment Advisors Pvt. Ltd. (MOPE) is a subsidiary of Motilal Oswal Financial Services Ltd. (MOFSL), a diversified financial services group with businesses in Securities, Asset Management, Private Equity and Investment Banking. MOPE is currently managing two growth capital funds i.e. India Business Excellence Fund (IBEF) and India Business Excellence Fund II (IBEF II) focused on providing growth capital to mid-market companies, typically in the range of US$ 10-20 million, across sectors. IBEF, launched in 2007 is a INR 550 Crore ($ 125 million) fund and is fully invested in thirteen portfolio companies across sectors such as food processing, bulk packaging, power transformers and power infra enablers, ITES, financial services, EMS, FMCG, auto components, etc. It has already made exits in eight companies. On the back of its success of IBEF, MOPE raised IBEF II, an Rs.950 Crore (~USD 160 million) growth capital fund. Currently, investments are being made through IBEF II.
About Dairy Classic:
Dairy Classic is a South India based Company engaged in the business of manufacturing and selling of ice creams and frozen desserts under the brand “Dairy Day”. Recently, the Company has developed 'NutriIce Creams' – an ice-cream/frozen dessert, rich in Omega-3 fat (vegetarian source) which is the first of its kind in India in collaboration with Central Food Technological Research Institute (CFTRI) and Oleome Biosolutions. The company offers a complete product basket consisting of cups, cones, sticks, candies, sundaes, take-home packs etc. It was established in 2003 and is majorly present in Karnataka and Tamil Nadu.
For further details contact:
Rohini Kute
Motilal Oswal Financial Services
Ph - +91-22-39822340
Mob- +91-9820196838Anirudh Rajan / Alpesh Nakrani
Paradigm Shift Public Relations
Ph- +91-22 22813797 / 98
Mob- +91-9892343828/ +91-9869121167