4 July 2008 - The World Bank's private sector financing branch, the International Finance Corporation (IFC), is planning to acquire 4.65 million shares at Rs 60 per share of Indian milk products firm Modern Dairies for Rs 279 million (USD 6.5 million).
Modern Dairies, based in the state of Haryana (Northern India), also said it has entered into a loan agreement with IFC for an external commercial borrowing of USD 8.5 million subject to company's obtaining the Reserve Bank of India approval.
According to IFC information, Modern Dairies is undertaking a 4-year investment program to expand its milk sourcing activity and to increase processing capacity for further processed dairy products such as Casein.
As part of the project, the company has already commissioned a plant to produce 9,000 MT of casein per annum with other by-products like WPC, lactose and pure ghee.
The company now plans to conduct the second phase of its investment program. It will expand its milk supply network of farmers in the vicinity of the processing plant; finalise the implementation of its production line of nutritional products; modernise its current operations to manufacture new products and achieve higher productivity; and install a 3.5 MW rice husk-based power plant for captive electricity supply.