Parag Milk adds more fat!

Parag Milk Foods is doing pretty well today morning. The stock price rose over 4.5% to Rs.284.60 and remains firmly around the same levels.

The stock is reacting positively to the news today morning that Parag Milk has acquired Danone Foods and Beverages’s manufacturing facility of Curd, Yogurt and other related products at Rai, Sonipat, Haryana near Delhi.

This acquisition would help expand the company’s footprints in North India and strengthen company’s fresh category distribution of Milk, Flavoured Milk, Buttermilk, Curd, Fresh Paneer and Yogurt in this region.

The company is targeting to complete the a acquisition process by Q1 FY 2018-2019. The entire cost of this buy is at Rs.30 crore. This is to be funded via internal accruals and some part in debt.