Dodla Dairy Ltd, the Hyderabad-headquartered listed dairy firm, on March 19 announced the acquisition of Karnataka-based Sri Krishna Milks Private Ltd for Rs 50 crore.
Sri Krishna Milks was incorporated in March 1989, and was the first private sector dairy company in Karnataka state, according to a stock exchange announcement.
The objective of the acquisition was to expand the company’s business, said Dodla Dairy while adding that the buy would not fall within related party transactions.
In a communique to the bourses, Dodla Dairy said it has executed a business transfer agreement with Sri Krishna Milks for the acquisition of the business as a going concern on a slump purchase basis. The consideration would be in the form of cash.
Sri Krishna Milks, which is mainly into procuring of milk, manufacturing and selling dairy products, reported a turnover of Rs 67.27 crore in FY 2020-21, down from Rs 76.27 crore in 2019-20 and Rs 90.20 crore in 2018-19, said Dodla Dairy.
Further, Dodla Dairy said the indicative time period for completion of the acquisition would be around two months from the date of the agreement.
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