Danone seeks majority stake in Kenventer dairy project

KOLKATA: French FMCG giant Groupe Danone is eyeing a majority stake for a Rs 250-crore dairy project in Rajasthan promoted by Kolkata-based Kenventer Group and the state government.

"Danone is seeking majority stake, but we are not going to do that. Danone is one of the few international companies with whom we are negotiating to be our partner in the value added dairy project, but we have not yet finalised it," Keventer Group chairman M K Jalan told media.

He said "We want a structure where Keventer and the international partner will hold 44.5 per cent each and Rajasthan government 11 per cent for offering the land for the project."

The Rajasthan government has asked the company to finalise the foreign partner and it would not intervene in the selection process, Jalan said. Keventer would sign an memorandum of understanding with the Rajasthan government tomorrow for the dairy and an agri-processing plant.

It would be a value added dairy project other than fresh milk with processing capability of 30 lakh litres a day. It would focus on exports and produce a number of milk-based products, the company said.

Keventer was also setting up an agri-processing and service zone with cold chain and logistics support. It would be built at a cost of Rs 70-80 crore.

"We propose to offer 11 per cent to Rajasthan government for the agri project, but it would not be more than 24 per cent for the land which would be converted into equity," Jalan said.