PE firm Kedaara Capital invests in ice cream brand Dairy Day

Through this investment, the PE firm seeks to support the brand's vision of emerging as one of India’s most loved ice-cream brands.

Private equity firm Kedaara Capital on March 21 announced an investment in Dairy Classic Ice Creams Private Limited (Dairy Day), a leading ice cream brand in South India.

Through this investment, the PE firm seeks to support the brand's vision of emerging as one of India’s most loved ice-cream brands.

This partnership will provide full exit to Motilal Oswal Private Equity and other Angel Investors, according to a press release.

The company will soon add 1.5 lakh litres of daily production capacity to its existing 2 lakh litres a day capacity, and it has achieved a revenue growth of 30 percent compounded annual growth rate (CAGR) over the last decade, the release said.

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MN Jaganath, managing director and CEO, and A Balaraju, technical director, were quoted in a statement as saying: "Given the convergence of values and aspirations, we are confident Kedaara will help us deliver on our vision to make Dairy Day one of India’s most loved ice-cream brands. Their wealth of expertise and in-depth retail and consumer experience will be invaluable as we expedite our growth. We are confident of setting up world- class production facilities in various locations in the coming years."

They further said that they are also thankful to Motilal Oswal Private Equity and that their collaboration with them has been extraordinary. "Our relationship has set a gold standard for what a true partnership should be."

Headquartered in Bengaluru, Dairy Day has established a strong presence in the states of Karnataka, Tamil Nadu, Andhra Pradesh, Telangana and Maharashtra with over 50,000 retailers.

Kedaara will work closely with the promoters and the professional management team in the company’s next phase of growth.

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“As long-term shareholders and partners to MN Jaganath and team, we have had a ring side view of Dairy Day’s growth journey. Over the last six years, they have demonstrated strong growth and established a market leading position in South India," Vijay Dhanuka, managing director of MO Alternates, said.

Consulting firm EY acted as the exclusive investment banker on this transaction.