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TPG Capital, Haldiram Snacks among suitors submit EoI to acquire loss-making Kwality Dairy

Loss-making dairy firm Kwality Dairy has received a new lease of life as TPG Capital and Haldiram among others suitors have submitted an expression of interest (EoI) to acquire the company, said a media report.

A consortium of strategic and financial investors including TPG Capital, Aion affiliate Arcion Revitalisation, IndiaRF — a joint venture between Piramal Enterprises and Bain Capital Credit — Haldiram Snacks and JK Group’s LVP Foods submitted the EoI to acquire Kwality Dairy, said a report in The Economic Times quoting officials aware of the matter.

 TPG Capital, Haldiram Snacks among suitors submit EoI to acquire loss-making Kwality Dairy

Representational image. PTI

The investors submitted the bids to Shailendra Ajmera of EY, who is the resolution professional for Kwality Dairy, which is undergoing a corporate insolvency resolution process (CIRP), said the report.

Another report by The Economic Times said that Kwality reported Rs 1,500-crore losses for the third quarter ended December, 2018. Net losses for the nine months were at Rs 2,450 crore against a profit of Rs 69.82 crore during the same period the previous fiscal, said the report.

In February this year, Kwality Dairy had sought more time to declare its financial results, said a PTI report.

It said after an order of the National Company Law Tribunal (NCLT), the powers of the board of directors of the company stood suspended and are being exercised by the interim resolution professional appointed by the NCLT.

"Though the company is sincerely endeavouring for completion of audit on priority basis, but the company would need additional time to declare and publish financial results beyond the stipulated due date and will be able to do within 30 days," Kwality Ltd said in a BSE filing.

In October last year, global private equity player KKR had filed insolvency plea against the dairy firm before the NCLT.

Kwality Ltd in 2016 had announced that it had raised Rs 300 crore from KKR India Financial Services and got additional commitment of Rs 220 crore. The amount was raised to fund its expansion plans and enter into consumer segment.

Incorporated in 1992, Kwality has six milk processing units in Uttar Pradesh, Haryana, Uttrakhand and Rajasthan with a capacity of 3.2 million litre per day. It sells milk and milk products under different brand including Kwality and Dairy Best.

Kwality has emerged as one of the leading exporter of dairy products from India, exporting across continents like Asia, Africa and Australia besides to more than 28 countries including Japan, UAE, Seychelles, Bangladesh, Sri Lanka, Jordan, Niger, Morocco etc, says the firm's website.

With PTI inputs

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Updated Date: Apr 18, 2019 18:58:35 IST