Haldiram emerges sole bidder to buy insolvency-bound Kwality for Rs 130 Cr
According to sources, Haldiram has emerged as the sole bidder for the acquisition. The CoC will vote on the resolution plan in the third week of October.
Delhi-based Haldiram Group has emerged as the sole bidder to acquire debt-ridden dairy company Kwality, with an offer of around Rs 130 crore in the ongoing insolvency proceedings, sources said.
The lenders are likely to vote on Haldiram's bid later this month, they added.
Shailendra Ajmera, who is part of multinational consultancy firm EY, has been appointed as the resolution professional to conduct the insolvency proceedings, which started in December 2018 following an order of the National Company Law Tribunal (NCLT).
Global private equity player KKR had filed insolvency plea against Kwality.
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In 2016, Kwality had raised Rs 300 crore from KKR India Financial Services and got additional commitment of Rs 220 crore. The amount was raised to fund its expansion plans and enter into consumer segment.
The Committee of Creditors (CoC) met on Wednesday to take stock of the resolution process and discuss the valuation report.
According to sources, Haldiram has emerged as the sole bidder for the acquisition. The CoC will vote on the resolution plan in the third week of October.
Kwality has a total debt of around Rs 1,900 crore, which means that lenders would have to take a significant haircut.
The company is engaged in the business of milk processing and manufacturing of dairy products, including ghee, milk powders, lassi, chaach and flavoured milk. It owns two milk processing units, one in Softa, Haryana, and another in Dibai, Uttar Pradesh.
This April, the sweets and snacks manufacturer Haldiram’s also partnered with seed and angel investor Venture Catalyst for an undisclosed amount with an aim to boost and facilitate startups in the consumer packaged goods (CPG) sector.
Post this collaboration, VCats announced its plans to invest in 10-15 relevant CPG startups in the next 12-24 months and build strong startup stories such as men’s grooming brand Beardo, female hygiene startup PeeSafe, and India’s first herbal energy shot drink FYRE.
(Editor's note: We regret the use of the image of Kwality Foods (a different entity) which was published earlier with this copy)
(Edited by Suman Singh)
