To consolidate its value-added business portfolio, Heritage Foods Ltd is all set to conclude a strategic deal with a multinational corporation based in Europe.
Heritage, whose core business is dairy, had strategically restructured its divisions over the past several months and divested its retail, bakery, agri and VetCa verticals to the Kishore Biyani-led Future Retail and acquired the dairy brands of Reliance Retail — Dairy Life and Dairy Pure.
The Hyderabad-based company, promoted by the family members of Andhra Pradesh Chief Minister N Chandrababu Naidu, is set to make yet another deft move to set up a venture with the MNC.
“This will not only facilitate broadening the product portfolio, but also scaling up business operations,” top management of the company said recently.
The company is guarded against providing any additional information till the deal is finalised due to non-disclosure agreement between the two companies.
Rajeshwar Burla, Associate Head, Associate Vice-President, told BusinessLine: “This is a phase of consolidation in the country’s dairy sector where MNCs entering India are looking at partnering companies with well laid out network of processing centres. The southern and western regions offer opportunity as there are number of private dairy firms as opposed to domination by cooperatives in the North and East.”
The country’s dairy business has witnessed a wave of consolidation with French MNC Groupe Lactalis SA acquiring Tirumala Dairy in 2014, and TPG making investments in Dodla Dairy. While French major Danone has outlined its interest to expand in India, several others are exploring various options.
Source : Business Line
Published on: May 25, 2017