Milky Mist plans to raise $120 million in its first round of institutional funding
- ByStartupStory | June 20, 2022
Milky Mist Dairy Food is in negotiations with private equity groups such as ChrysCapital, Kedaara, Multiples, True North, TA, and Temasek to seek $100-120 million in what would be its first institutional finance. The final binding bids should arrive by the end of the month or early next month. One of the persons added that the acquisition is expected to close next quarter.
Veda Corporate Advisors, a Chennai-based investment bank, has been hired to assist the dairy and fresh foods firm with the finance process. Temasek and Veda Corporate Advisors’ representatives declined to comment. Multiples, Kedaara, True North, TA, ChrysCapital, and Milky Mist spokespeople did not reply to emailed questions.
T Sathish Kumar, a high school dropout who comes from a farming family, founded Milky Mist in 1992. It began by selling milk and has since expanded into value-added goods such as milkshakes, flavoured yoghurt, butter, cheese varieties, and ultra-high-temperature (UHT) items. The firm has a 55-acre facility in Perundurai, Tamil Nadu, and distributes its products through a retail network of over 1,50,000 locations.
It has agreements in place with 60,000 dairy producers to process 1.5 million litres of milk each day. It brings in between Rs 1,300 and Rs 1,400 crore in yearly income. Milky Mist has previously raised finance from Anicut Capital, a venture debt firm, after being bootstrapped.
With investors, the organised dairy and fresh food sector are gaining traction. The dairy industry is on track for its second consecutive fiscal year of double-digit revenue growth, at 11-12%, a bit behind last fiscal’s 13% increase. Even while sales of liquid milk remain stable and the full-year advantage of retail price rises introduced last fiscal year is realised, the growth is fueled by strong demand for value-added goods.
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