India’s Mahindra Agribusiness is set to acquire a dairy for up to INR500 crore in a move to enter the dairy segment.
The Economic Times reported that the company is expected to complete the acquisition in the current financial year.
In August this year, Mahindra announced its intentions to enter the dairy industry, with a special focus on the production of pouched milk.
Mahindra agri and allied business chief executive Ashok Sharma was quoted by ET as saying: "With over 80% of the market under unorganised sector, the company sees a huge business potential in the segment.
"It will not be just a pilot project. Dairy will be a key growth sector."
According to Sharma, Mahindra will either retain the acquired brand or launch its own brand, only if required.
The company earlier said that it will use the supply chain model of its grape exporter Mahindra ShubhLabh Services by dealing directly with farmers.
In addition to dairy, Mahindra Agribusiness is also entering other newer businesses such as pulses, fruit juices and processed foods.
