Lactalis buys Indian dairy firm Tirumala Milk Products

Lactalis, a French multinational dairy products manufacturer, has bought Indian dairy firm Tirumala Milk Products, for an undisclosed sum.

Established in 1996, Tirumala is the second largest private dairy company in South India, with a processing capacity of 1.66 million litres per day.

The company produces a wide range of products, including milk, milk powder, butter, ghee, butter oil and ice cream, and has a strong presence in the states of Tamil Nadu, Andhra Pradesh and Karnataka.

Tirumala Milk raised equity investment in 2010 from the affiliates of Carlyle Group, an American asset management firm.

The deal marks the largest dairy transaction in India and Lactalis’ entry into the local dairy market, which is one of the leading producers of milk and milk products.

Tirumala co-founder and managing director D. Brahmanandam said, "We are extremely happy to have partnered with Carlyle, who provided numerous value creation activities and acted as a catalyst in the growth of the company over the past few years.

"Tirumala is the partner of choice for Lactalis, and is well poised to emerge as a national brand with market leadership position."

Barclays India CEO and country head Jaideep Khanna said, "Tirumala provides a strong platform for Lactalis’ entry into one of the largest dairy markets globally."

Barclays provided financial advisory services to Tirumala, while Rothschild acted as the sole financial advisor to Lactalis.

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Image: The deal is the largest dairy transaction in India. Photo courtesy of Alessandro Paiva.