Dutch dairy co-operative Royal FrieslandCampina has announced plans to acquire 60-75% stake in India-based Parag Milk Foods, in a deal worth $350m.
The existing private equity investors in Parag Milk including Motilal Oswal PE and IDFC Alternatives are expected to offload their shares, reports economictimes.
Parag Milk Foods currently has the capacity to produce one million liters of milk everyday. It also offers whey protein and cheese, besides traditional milk and milk products.
With over 2,000 distributors, the company exports its milk products to 27 countries across West Asia, South-East Asia and Africa.
Under a separate development, FrieslandCampina is in talks with China Huishan Dairy to form a joint venture (JV) to produce, market and sell infant milk formula in the People's Republic of China.
The JV will produce and market infant milk formula, by using raw milk from Huishan's dairy farms in China.
The two companies will continue to operate their existing infant formula businesses separately.
Huishan will continue marketing its own brands and Friso brand will still be exclusively produced in the Netherlands and marketed by FrieslandCampina.
