November 26, 2014
India is the world’s biggest producer and consumer of milk. With over 80% of the country’s dairy sector being unorganized and fragmented, Mahindra Agribusiness has earmarked the industry as being a major growth sector for the company, and plans to acquire a dairy for Rs500 crore (US$80 million) in order to gain a share of the country’s $58 billion industry. Private equity deals in Indian agriculture and agribusiness have more than tripled, increasing from 2% of total in 2004 to more than 6%, and $1 billion worth of investments are expected to be completed within 2014/15. With their potential for long-term growth and down streaming, dairy and food processing are the two most active industries in India for private equity activity with between 25 and 30 deals, each worth between $250 million and $650 million in recent years. To read further what Indian agribusiness owners are saying about the increasing rate of private equity activity:
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