HYDERABAD: Chennai-based dairy producer Hatsun Agro Products has acquired Jyothi Dairy for up to Rs 65 crore as part of its plans to expand in Andhra Pradesh. The announcement sent Hatsun Agro shares up 5% to close Wednesday at Rs 166.95 on the Bombay Stock Exchange, in a weak broader market.

The over 12-year-old Jyothi Dairy, whose brands include Jyothi Milk, has a turnover of Rs 100 crore and production facilities in Hyderabad and Chittoor. It also has milk collection centres at 10 different locations in Andhra Pradesh. "The memorandum of understanding (MoU) will be signed in a week's time. Jyothi has a capacity of 1.3 lakh litre and this will be scaled up to 2 lakh litre," said RG Chandramogan, chairman and managing director, Hatsun Agro Products .

Once Jyothi reaches 2-lakh-litre capacity, its revenues will jump to Rs 125 crore, he said. T Balaji, managing director of Jyothi Dairy, said financial terms such as swap ratios are still to be worked out. "Intense competition in the dairy market has prompted us to merge with a bigger player like Hatsun," he said. The deal is closed and the exact details are expected to be released by the first week of November, Hatsun said in a statement. Chandramogan said Hatsun's total capacity will reach 33.4 lakh litre after the Jyothi acquisition and a new 2 lakh capacity in Tirunelveli, which is to be commissioned in four months.

Source : economictimes.indiatimes.com