Dodla Dairy Ltd has announced the acquisition of 100 percent equity in HR Food Processing Pvt Ltd for ₹2.71 billion, marking a strategic move to strengthen its footprint in the dairy-based value-added product (VAP) segment. The deal is expected to enhance Dodla’s production capabilities, diversify its product portfolio, and improve access to high-growth urban markets.
Key Highlights and Transaction Details:
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The acquisition includes HR Food’s processing plant located in Maharashtra, with a daily capacity of 1.2 LLPD for milk and 25 MTPD for curd and paneer.
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Dodla will fund the transaction through internal accruals and short-term debt, leveraging its robust balance sheet and low debt-to-equity ratio of 0.03.
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HR Food Processing reported FY24 revenue of ₹1.12 billion and EBITDA margins of 14.8 percent, indicating strong operational efficiency.
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The deal includes transfer of all assets, employees, and existing distribution contracts, ensuring business continuity and integration synergies.
Strategic Rationale and Outlook:
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The acquisition aligns with Dodla’s strategy to expand its VAP portfolio, which includes curd, paneer, ghee, and flavored milk—segments contributing over 28 percent of total revenue.
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It also supports Dodla’s plan to deepen its presence in western India, complementing its stronghold in southern states.
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Management expects the deal to be EPS accretive from FY27, with integration benefits kicking in post FY26 capex cycle.
Sources: Dodla Dairy BSE Filings, Business Standard, Economic Times, Moneycontrol, Company Press Release July 2025