Kedaara Capital has acquired a stake in Dairy Classic Ice Creams, popularly known as Dairy Day, a prominent ice cream brand in South India. This is a step to increase its presence in the ice cream market. This investment marks the exit of previous investors, including Motilal Oswal Private Equity and other Angel Investors, as confirmed by a press statement.
Based in Bengaluru, Dairy Day has carved a niche for itself with a robust regional footprint across Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra, boasting a network of over 50,000 retailers. With plans to scale up production and extend its reach nationwide, Dairy Day is set to augment its existing daily production capacity of two lakh litres with an additional 1.5 lakh litres per day.
The company has witnessed impressive revenue growth of 30% compounded annually over the past decade, indicative of its strong market position and consumer appeal.
M.N. Jaganath, Managing Director and CEO of Dairy Day, expressed confidence in Kedaara’s partnership, emphasizing their shared vision to elevate Dairy Day into one of India’s most beloved ice cream brands. He highlighted the commitment to establishing state-of-the-art production facilities in various locations in the coming years.
Sunish Sharma, Founder and Managing Partner of Kedaara Capital, echoed this sentiment, citing the rapid growth of the ice cream segment within the broader food and beverage industry. He expressed enthusiasm about unlocking Dairy Day’s full potential and reinforcing its leadership position with the support of Kedaara’s expertise.
With over $3.7 billion under management, Kedaara Capital has a proven track record of investments across diverse sectors, including consumer goods, financial services, healthcare, technology, and industrials. This partnership between Kedaara Capital and Dairy Day signifies a strategic alignment aimed at driving growth and capturing new opportunities in the thriving ice cream market.