Fonterra scotches speculation of $US450m Indian acquisition

Fonterra has dismissed speculation it is among potential bidders for India's Tirumala Milk Products.

The co-operative scotched a Times of India report naming it with French food conglomerate Danone as vying for a controlling stake in Hyderabad-based Tirumala, with a spokesman for the dairy exporter calling it "rubbish".

The $US450 million enterprise value figure reported would be material for Fonterra and would need to be disclosed, he says.

Global private equity firm Carlyle Group, which holds 20%, and Tirumala's five other owners have reportedly short-listed three investment banks to run the sale. The founders are expected to keep minority stakes.

Tirumala is the second biggest private supplier of liquid milk in India's southern states, with turnover of 117.5 billion rupees, or $NZ2.61 billion at today's exchange rate of 44.98 rupees per New Zealand dollar.

It processes 1.6 million litres of milk a day in a string of plants across India's southern states of Tamil Nadu, Andhra Pradesh and Karnataka.

India is the world's biggest dairy supplier, accounting for some 16% of total production, according to the National Dairy Development Board. The bulk of that is consumed domestically.

Last year, Fonterra embarked on a plan to look at the feasibility of farming in India as part of a government-led drive to forge closer ties with the world's 10th biggest economy.

Fonterra has identified rapidly growing emerging markets as a strategic target and has saddled India alongside China in the new management structure.

(BusinessDesk)


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6988 0.0000 0.00%
AUD 0.9369 0.0000 0.00%
EUR 0.6375 0.0000 0.00%
GBP 0.5339 0.0000 0.00%
HKD 5.4285 0.0000 0.00%
JPY 74.0790 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1323.4 -8.590 2016-07-22T00:
Oil Brent 46.1 -0.800 2016-07-22T00:
Oil Nymex 44.2 -0.500 2016-07-22T00:
Silver Index 19.7 -0.130 2016-07-22T00:

Indices

Symbol Open High Last %
NZX 50 7214.1 7246.6 7214.1 0.17%
NASDAQ 5078.1 5103.5 5073.9 0.52%
DAX 10130.5 10181.2 10156.2 -0.09%
DJI 18524.2 18571.3 18517.2 0.29%
FTSE 6699.9 6735.9 6699.9 0.46%
HKSE 21913.0 21972.9 22000.5 -0.16%
NI225 16612.9 16691.8 16810.2 -1.09%
ASX 5512.6 5512.6 5512.4 -0.26%