France’s Lactalis to buy India’s Prabhat milk processing unit for $238 mln

French dairy products company Lactalis has agreed to acquire Indian peer Prabhat Dairy’s milk-processing business for approximately 1,700 crore rupees ($238 million).

Tirumala Milk Products, Lactalis’ Indian arm, will buy Prabhat’s dairy business and its step-down subsidiary, Sunfresh Agro Industries, through a share purchase agreement.

Prabhat Dairy said that the association with Lactalis will give the business a strong platform for advanced development momentum in becoming one of the largest private dairy businesses in India.

The purchase will help Lactalis decrease its dependence on home markets within Europe. Following the transaction, Prabhat Dairy will focus on its cattle feed business and extend into allied businesses like animal nutrition and animal genetics.