Motilal Oswal PE invests Rs. 110 Cr. in Dairy Classic Ice Creams
India Business Excellence Fund, managed by Motilal Oswal Private Equity, has invested Rs. 110 Crore in Bengaluru-based Dairy Classic Ice Creams. The capital raised is to be used for expansion in Tamil Nadu and Karnataka and spreading the distribution network and brand building. This is the first round of private equity investment in the company.
Founded in 2003, Dairy Classic is one of the top five ice cream brands in South India and it manufactures and sells ice cream and frozen desserts and has a strong presence in Karnataka and Tamil Nadu and they have a strong supply chain network with more than 15,000 retailers in both regions. The company has a centralised, state-of-the-art manufacturing facility near Bengaluru and has a large product basket of ice cream and frozen desserts.
In a joint statement from directors M. N Jagannath and A. Balaraju, it was said, “Partnering with Motilal Oswal Private Equity will help Dairy Day to achieve its multi-pronged goals of becoming one of the leading ice cream brands in the Southern India while continually improving its market share. We strongly believe that MOPE is one of the premier private equity fund managers in India. Their experience of managing several companies across sectors will bring a lot of value to us as we endeavour to build an excellent organisation.”
We are pleased to be part of what we believe is one of the fastest-growing ice cream brands in the country. The brand Dairy Day has become synonymous with value for money products and remains an endearing brand,” said Vishal Tulsyan, managing director and CEO of MOPE and he added, “We believe that the company is well-positioned to benefit from increasing acceptance of ice cream as dessert, heightened brand awareness, higher spending capabilities and improving refrigeration infrastructure. Dairy Classic is a fairly young company and the management has shown exceptional execution capabilities by scaling the brand where it is today, in such a short time span.”