Dairy products company Heritage Foods Ltd has charted out a major expansion plan which will see the company tripling its revenue past the Rs. 6,000-crore mark by 2022, up from Rs. 2,380 crore it logged during 2015-16.
It is expected to shortly finalise its numbers for 2016-17, which will see the retail business out of the network divested to Kishore Biyani-promoted Future Retail and the addition of dairy business made through the acquisition of Reliance Dairy portfolio.
As a part of its diversification and consolidation drive, it is at advanced stage of finalising a strategic deal with an MNC and expects to form a joint venture soon.
The company promoted by family members of Andhra Pradesh Chief Minister Nara Chandrababu Naidu had divested its interest in retail chain business and acquired the dairy business portfolio of Reliance to focus on dairy business.
Nara Brahmani, Executive Director, Heritage Foods, said: “The company is undergoing a re-branding exercise, including packaging targetting a wider customer base across India. Focussing on the brand promise of ‘health & happiness’, our focus will continue to be the farmer and how we can make their lives better.”
It has also changed its logo.
Interacting with media in the presence of entire management of Heritage Foods, including Nara Bhuvaneshwari, Vice-Chairman and Managing Director, Brahmani said: “With a presence in 15 States, the company currently handles about 14 lakh litres of milk per day. We plan to double this over the next five years.”
Highlighting the company’s vision to become a Rs. 6,000-crore company, which will mean a CAGR of 25 per cent, she said value added products currently account for about 24 per cent of the business and this is proposed to be increased to 40 per cent over the next five years.
Having acquired the dairy business of Reliance, Heritage now has access to five new markets apart from retail network of Reliance and Future Group. Heritage had divested its retail business to Future Group.
“Over the next four to five years, the company expects to set up about five more processing units, apart from expanding the existing units. Each new processing unit may entail an outlay of Rs. 25-30 crore,” said M Sambasiva Rao, President, Heritage Foods.
Source : Business line
Published on: April 26, 2017