Mumbai-headquartered company, Hindustan Unilever Ltd. has shown interest in buying Dinshaw Dairy Food, according to a media report.
HUL is in talks with the promoters of Dinshaws to strike an all-cash deal of INR 1,000 crore, the daily news, Business Standard reported citing people, who are privy to the matter.
This would value the company at a little more than two times its estimated 2018-19 sales of INR 450 crore, as reported by the daily news.
Ice-cream making firm, Dinshaws was for sale on auction since April, according to the media report. It further added that Hindustan Unilever Ltd. has defeated other interested buyers like PE firm, Blackstone and Carlyle.
The ice-cream maker, Dinshaws was incorporated in 1932 in India. Gradually, the ice-cream making business continues to grow and in 1972, the company increased its presence by setting up single-store operations. In 1981, Jimmy Rana, current Managing Director of Dinshaws, joined the company.
Later in 2002, The Bapuna Family joined the company as an equal shareholder and in turn, helping the company grow further. By 2012, the company managed to establish a dairy plant with a production rate of 500,000 liters per day.