One of the largest suppliers of iron ore to Jindal Steel and Power Limited (JSPL) – has developed as the winning bidder for Kwality Dairy after the milk and dairy products manufacturer was put on auction through an e-bidding process.
Sarda Mines won the e-bid process with an offer of Rs. 121 crore and is now subject to a final approval from the National Company Law Tribunal (NCLT).
Though JSPL does not directly own a stake in Sarda Mines, the Odisha-based mining company is a supplier of iron ore to its steel plants. Sarda Mines recently purchased a 0.52% stake in JSPL through bulk deals.
Haldiram’s and French dairy firm Lactalis were among those also interested in buying Kwality Dairy. Haldiram’s had made an offer of ₹144 crore to creditors but it was rejected and they chose to send the company into liquidation and put it through an e-auction.
Delhi-based Kwality Dairy was originally set up as a backward integration facility to supply milk for making ice creams that were sold under the Kwality brand. Hindustan Unilever acquired the Kwality ice creams brand from its original owners, the family of Iqbal Ghai and PL Lamba, in 1994.