TVS Capital, International Finance Corp invest $25 mn in Dunar Foods

NEW DELHI: Domestic private equity firm TVS Capital and the World Bank group entity International Finance Corp (IFC) today announced a USD 25 million (about Rs 124 crore) investment in basmati rice processing firm Dunar Foods.

While TVS Capital, founded by automotive giant TVS group's Gopal Srinivasan in 2007, has put in Rs 50 crore in Dunar Foods, while IFC has infused the remaining Rs 74 crore.

"The investment by the two leading private equity funds demonstrates the robust business model of Dunar Foods Limited and its competitive edge in the basmati rice business," Dunar Foods MD Surender Gupta said a statement.

Dunar Foods is located in Karnal, Haryana, and exports basmati rice to Middle East, Europe and US. It offers a range of basmati rice under "Dunar" brand both in and outside India.

It plans to double its production capacity in the next 3 years.

Commenting on the investment, TVS Capital MD Gopal Srinivasan said, "We believe in the company's growth potential, because of the global branded rice business and the opportunity to scale the Indian retail business."

However, the shareholding acquired by the two entities in Dunar Foods was not disclosed.