Brahmani Nara, ED, Heritage Foods said the company is keen to expand its operations to other regions than just South India, which is its core market. They aim to be a pan-India player in the dairy industry and ride on value added growth.
Optimistic about business growth, she said the company’s vision is to be Rs 6000 crore company by 2022 through growth in existing as well as new markets – both organically and inorganically and through huge growth in value added products.
Currently, the contribution of value added products to their overall revenues is about 24 percent, she said adding that they want it to be around 40 percent by 2022. Some of the value added products are curd, buttermilk, ice-cream, frozen desserts etc.
They are also open to joint ventures with international players for products like yoghurts etc.
The company now has a presence in Maharashtra, Delhi and NCR as well. Acquisition of Reliance’s dairy business will help expansion and get a foothold in markets like Punjab, Haryana, Rajasthan, Uttarakhand and Madhya Pradesh, she said, adding that CCI has given its approval to acquire Reliance’s diary business.
The stocks is up 100 percent in the last 10 months.
Currently, the procurement of Reliance’s dairy business is little more than 2 lakh litres per day and will add around 20 percent to the company’s existing procurement.
Heritage Foods Limited has six-business divisions - Dairy, Retail, Agri, Bakery, Renewable Energy and Vetca under its flagship Company (formerly known as Heritage Foods (India) Limited).
Talking about procurement business outlook, she said this summer season looks tough for all dairy companies because the procurement prices have gone up 15-20 percent and generally there is milk shortage. However, with increase in the sales of value-added projects in summers, it will take care of the increase in procurement prices.
The company is still completing the transaction of the sale of its retail business to Future Retail, said Nara. It will be an all-equity transaction, where Heritage will then hold about 3.65 percent of Future Retail Limited going forward and will hold on to the stake because of locking period.For full interview, watch video