Erode-based dairy products manufacturer Milky Mist is in the final round of discussions with consumer-focused private equity players for a Rs 300-crore fund-raiser that will predominantly help build a large factory, expand into western and eastern markets and launch new products.
Milky Mist will build a greenfield unit in Erode that will convert 10 lakh litres of milk procured directly from farmers every day into paneer, curd, cheese, yoghurt and other dairy products.
The new factory will contain a separate 70-tonne-a-day unit for making paneer, which has been a consistent business driver for over two decades for the company.
With plans for a 30-tonne whey powder plant firming up now, the company has taken the discussions to the term-sheet stage with the three PE firms chosen out of 12 potential investors.
The Rs 300-crore round is Milky Mist's first-ever private placement, shedding about a fifth of the stake in the company fully owned by founder and managing director Sathish Kumar and his wife.