Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fonterra scotches speculation of US$450 mln Indian buy

Fonterra scotches speculation of US$450 mln Indian acquisition

By Paul McBeth

Nov. 21 (BusinessDesk) - Fonterra Cooperative Group, the world's biggest dairy exporter, has dismissed speculation the company is among potential bidders for India's Tirumala Milk Products.

The New Zealand cooperative 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 US$450 million enterprise value figure reported would be material for Fonterra and would need to be disclosed, he said.

Global private equity firm Carlyle Group, which holds 20 percent, 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 NZ$2.61 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 percent 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 tenth biggest economy.

Since then, the dairy exporter has identified rapidly growing emerging markets as a strategic target, and has saddled India alongside China in the new management structure.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:


Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news