Parag Milk Foods Limited (Parag) is planning to raise money from International Finance Corporation (IFC) for meeting the company's working capital needs and for its long-term expansion plan.
IFC committed around $31 million (around Rs 230 crore) to Parag in the form of non-convertible debentures to support the company’s working capital needs and long term capex plans.
IFC’s investment under RSE Covid-19 facility aims to provide Parag with sufficient additional liquidity in support of its working capital needs and its long term expansion plans.
IFC’s proceeds will be used for further development of milk processing plants at two locations – Manchar in Maharashtra, and Palamner in Andhra Pradesh.
Parag was established in 1992 and one of India’s largest dairy companies, catering to major cities in the country with a strong presence in western and southern India.
It has a milk processing capacity of upto 3,500,000 litres per day (LPD) - 2,000,000 LPD at Manchar, Maharashtra, 1,400,000 LPD at Palamner, Andhra Pradesh and 100,000 LPD at Sonipat, Haryana.
The company has a well-diversified product portfolio ranging from liquid milk to value added products like UHT milk, cheese, butter, ghee (clarified butter), paneer (cottage cheese), yoghurt, curd, lassi, flavored milk, dairy whitener and milk powder, sold under the brands ‘GO’, ‘Gowardhan’, ‘Top Up’, ‘Avvtar’ and ‘Pride of Cows’, with value added products being > 65% of sales.
The company’s main sponsor is Devendra Shah, who together with his family, owns 46 per cent of Parag’s shares, while 29 per cent of the company is held by institutional shareholders and the balance 25 per cent is held by public shareholders.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU