CavinKare Pvt Ltd is in the process of finalising its Rs 350-crore private equity (PE) funding.
“It looks like we will seal a pact in the next few weeks,” said C.K. Ranganathan, Chairman and Managing Director of the Rs 1,200-crore consumer goods company.
The company has been in talks with a couple of PE investors, and the plan is to raise around Rs 350 crore to invest in its proposed expansion projects.
“We are planning to dilute around 10 per cent equity, and the mandate has been given to JM Financial,” said Ranganathan.
CavinKare has a presence across product categories such as personal care products, food and beverage and dairy.
The company also forayed into the restaurant business with VegNation in 2009, and opened four outlets in Chennai and Puducherry.
As it was not found to be the right fit for the company, it exited the business last month, said Ranganathan.
Expansion projects
In the last couple of years, the company invested over Rs 150 crore in business expansion.
Besides investing in its dairy business, it also invested in expansion of manufacturing capacity of its beverages brand Maa (acquired by the company in 2008 for Rs 30 crore) and snacks brand Garden, which it acquired in 2009 for Rs 50 crore.
Personal care range
Now, the company wants to go in for capacity expansion for its personal care range, which, according to Ranganathan, would warrant a big investment, and the proposed PE funds would be utilised for that.