Daijiworld Media Network - New Delhi (SHP)

New Delhi, Oct 11: Haldiram Group emerged as the only bidder to acquire the bankrupt dairy company, Kwality, for Rs 130 crore.

Shailendra Ajmera, of EY, is appointed as the resolution professional to conduct the insolvency proceedings, which started in December 2018 following an order of the National Company Law Tribunal (NCLT).

Global private equity firm, KKR was the one to file insolvency plea against Kwality. Back in 2016, Kwality raised Rs 300 crore and received a commitment of Rs 200 crore more to expand in the consumer segment.

Now, Kwality has over 1,900 crore debt and lenders are looking at a slim possibility of recovery of their debt amount.

Kwality is engaged in the business of milk processing and manufacturing of dairy products, including ghee, milk powders, lassi, chaach and flavoured milk. It owns two milk processing units, one in Softa, Haryana and another in Dibai, Uttar Pradesh.

The Committee of Creditors (CoC) met on Wednesday, to take stock of the resolution process and discuss the valuation report. They will be voting on the resolution plan in the third week of October.

Meanwhile, Haldiram partnered with seed and angel investor, Venture Catalyst for an undisclosed amount to facilitate startups in the consumer packaged goods (CPG) sector.