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

 

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

March 2017: Commerce Commission Delays Decision On Fairfax-NZME

The Commerce Commission has delayed its decision on the proposed merger between NZME and Fairfax Media's New Zealand assets, saying the deal is complex and it needs more time to assess the impact on both news content and the advertising market. More>>

ALSO:

Plan Plan: Permanent Independent Hearings Panel Proposed For Planning

The Productivity Commission recommends creating a permanent independent hearings panel like the one that cut through local politics to settle Auckland’s Unitary Plan, for the whole country. More>>

ALSO:

Statistics: NZ Jobless Rate Falls To 5.1% Under New Methodology

New Zealand's unemployment rate fell more than expected in the second quarter as Statistics New Zealand adopted a new way of measuring the labour market to bring the country in line with international practices, and while a growing economy continued to support jobs growth. More>>

ALSO:

Eggs-it Strategy: Countdown Programme For Free Range And Barn Launches

Countdown has today launched an Egg Producer Programme to support free range and barn egg farmers to increase the supply available for Countdown stores and our customers. More>>

ALSO:

LVRs: Banks Get An Extra Month To Meet New Lending Restrictions

The Reserve Bank won't impose new lending restrictions for highly-leveraged investment purchases until the start of October, giving lenders an extra month to clear their backlog of pre-approvals. More>>

ALSO:

Commerce Commission: Charges Against Youi Insurance

The Commerce Commission has filed charges in the Auckland District Court against insurance firm Youi NZ Pty Limited, alleging it employed misleading sales techniques when attempting to sell policies to consumers who were only seeking a quote. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news