Danone and Fonterra are planning to acquire a controlling stake in India-based Tirumala Milk Products, a leading supplier of liquid milk in the country.
The company's private equity investor Carlyle Group, and the promoters have started a share sale plan. While Carlyle Group holds about 20% stake, the remaining shares of the company are owned by five first-generation rural entrepreneurs.
Tirumala Milk is planning to seek around about $450m in enterprise valuation.
The investment bankers will be appointed after buyers come forward to purchase and the sale will be open only to foreign acquirers. The founders plan to retain a part of their stake, reported Times of India quoting a source with the knowledge of the matter.
Tirumala Milk Products is expected to post a revenue of INR15bn ($272.61m) in the current fiscal year, with an operating profit estimated between 9% - 10%.
The company, which has several plants across three southern states of India, processes 1.6 million liters milk every day
