Indian private equity fund manager Motilal Oswal Private Equity (MOPE) has agreed to invest 1.1 million rupees ($17 million; €15 million) into Dairy Classic Ice Creams, maker of Dairy Day brand ice cream and other frozen desserts.
The investment came out of the third India Business Excellence Fund (IBEF-III), which is said to be in the process of raising up to $300 million.
This marks the first round of private equity investment into the Bengaluru-based ice cream company and will be used for further expansion in Tamil Nadu and Karnataka, enlarging its distribution network and brand building, according to a joint statement from the firms.
Vishal Tulsyan, managing director and chief executive of MOPE, referred to Dairy Classic as one of the “fastest-growing” ice cream brands in India.
“We believe that the company is well-positioned to benefit from increasing acceptance of ice cream as dessert, heightened brand awareness, higher spending capabilities and improving refrigeration infrastructure,” he said. “Dairy Classic is a fairly young company and the management has shown exceptional execution capabilities by scaling the brand where it is today.”
Dairy Classic has an existing presence in Tamil Nadu and Karnataka, with a supply chain network of more than 15,000 retailers, according to the statement.
MOPE is a subsidiary of Motilal Oswal Financial Services, a diversified financial services group with businesses in securities, asset management, private equity and investment banking. Its first private equity fund in the series was the $110 million IBEF-I, which has been fully deployed. IBEF-II reportedly raised $125 million and is nearly fully invested.