Carlyle Group invests Rs110 crore in Tirumala Milk Products

Tirumala Milk Products, the second-biggest dairy products company in South India after Hatsun Agro Products, has received a Rs110 crore investment from the US-based Carlyle Group, the world's largest private equity firm.

Founded in 1998, in Guntur district, Andhra Pradesh, Tirumala Milk Products manufactures various dairy products and handles seven lakh litres of milk per day at its packing stations and dairy plant, which is the largest plant in Andhra Pradesh.

It supplies milk, curd and other dairy products to major markets of Andhra Pradesh, Tamil Nadu and Karnataka and had sales of Rs470.79 crore last year.

Washington D C-based Carlyle Group with $84.5 billion in assets under management as of 31 March 2009, made the investment in Tirumala for a minority stake through its Asia Growth Partners IV fund, according to various media reports.

Tirumala is currently implementing an expansion programme and will be using the funds for expansion, distribution, brand building and for enhancing production infrastructure and capacity.

The company also plans launch of new brands and products as also enter new markets like Maharashtra as part of its growth strategy in the near term.

For Carlyle, this will be the first investment in India's agro-industry and also its first investment in two years in the country.