Kwality packs a delicious "KKR" flavour

Today morning, before the opening bell, Kwality Ltd, India’s largest private dairy company, announced that it has received capital commitment of upto Rs 520 crore via structured finance from PE Fund, KKR India.

The proceeds are to 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. The company has signed Bollywood Actor, Akshay Kumar, as its brand ambassador.

Clocking volumes of almost 4 times, the stock price is strongly in the green today, up over 6% intra day at Rs.118.40. Its 52-week high is at Rs.153.70 and low at Rs.62.40.