KKR backs Kwality Ltd.; Commits upto Rs.

520 crore towards

aggressive expansion plans
New Delhi, July 12, 2016: Kwality Ltd, Indias largest and fastest growing private dairy company, has
received capital commitment of upto Rs 520 crore via structured finance from KKR India, one of the
biggest PE fund, to fuel its aggressive growth plans as the company continues to rapidly shift its
business model towards B2C/retail segment. ICICI Securities PD Ltd. is the financial advisor to the
transaction.
The proceeds shall be utilized to fund Capex to further strengthen milk procurement infrastructure
solely for high-margin Value-Added Product categories including Cheese, Paneer, Table Butters,
Tetra-Packs, flavoured milk and yoghurt among others. The company intends to roll out a series of
such products in the near future.
Additionally, funds will be deployed for part repayment of debt to improve cash flows and augment
brand building activities.
Kwality has engaged reputed advertising and marketing firms for its brand building initiatives,
namely McCann for Creative, Zenith Optimedia for Media Planning, and Digital Quotient for Social
Media. The company has signed Bollywood Actor, Akshay Kumar, as its brand ambassador.
Additionally, the company has roped in Ernst and Young (E&Y) as its IT transformation partner.
Commenting on the development, Mr Sanjay Dhingra, MD, Kwality Ltd, said, It gives us immense
confidence that KKR has believed in our growth story and is backing our expansion plans. We are in a
critical stage of growth where we are shifting our business model from B2B to B2C, which
encompasses revamp of all business functions across the value chain including procurement,
product mix shift to cater to evolving needs of customers ensuring high quality, brand building,
extensive distribution network to ensure product availability and boost retail presence, robust IT
infrastructure for process integration and strong managerial competencies. This investment would
support a giant leap in this direction enabling faster growth and achieving high profitability. Further,
I believe KKRs strong pedigree and rich experience combined with our management capabilities is
going to unlock significant value and will benefit all stakeholders.
ABOUT KWALITY LIMITED:
Incorporated in 1992, Kwality Limited is Indias largest and fastest growing private dairy company.
With six milk processing units in Uttar Pradesh, Haryana, Uttarakhand, and Rajasthan, has milk
processing capacity of over 3.2 Mn litres/day. The product range includes milk, ghee, cow ghee,
Livlite 85% less cholesterol ghee, flavoured milk, curd, skimmed milk powder, dairy creamer, Chaach,
Lassi and other dairy products under its brands Dairy Best, KDILs Kwality, Good-Health, Wake
Up,and Kream-Kountry. The Company is in the process of launching value-added products such as
tetra pack milk, cheese in numerous variants, paneer, and table butter. With itswide distribution
network, the company caters to its retail customers and supplies dairy products to institutional
customers directly, which includes leading MNCs and Indian companies. Kwality Limited was
conferred the Dun & Bradstreet Corporate Award 2014 as the top Indian Company under the sector
Food & Agro Processing.

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