Sources said that Actis, a private equity fund from New York, had been meaning to exit from its stake in Nilgiri Dairy Farm for around US$110 million. Actis is a private equity fund that targets companies in emerging markets. Actis currently has at least US$5 billion worth of assests under management.

Actis in 2006 acquired a large 65% stake in Nilgiri for US$65 million. The private equity firm, however, has been making efforts to exit the dairy farm company since late last year, according to the sources. It had enrolled HSBC previously to scout for a potential buyer.

Bangalore-based Nilgiri was founded in 1905. The dairy farm operator currently has about 110 retail stores with total sales of around INR700 crore. Nilgiri is thought to have a high brand equity in the Southern area of India.

The sources added that Actis is having discussions with several equity funds, including Advent International, in its bid to exit the retailer. Actis, so far, has already committed up to US$1 billion in varied companies in a range of sectors that include health care, infrastructure, and consumer segments.