Heritage Foods open to further acquisition

Heritage Foods, the dairy products company which is based here, wants to get to Rs Rs 6,000 crore annual revenue in five years. The figure was Rs 2,300 crore in 2015-16.

For this, it says it would look for acquisitions, expanding its consumer base and its list of value-added products.

Present in 10 states and the Delhi region, it had made its first inorganic move (for a North India foray) late last year by acquiring the dairy division of Reliance Retail. This helped it gain entry into five states and increase the reach in those where it was already present.

"Companies with a strong procurement base are the ones we will be certainly interested in. We want to grow our business through organic and inorganic means," said Brahmani Nara, executive director.

The aim is a compounded annual rate of growth at 25 per cent in the next five years to reach the revenue target. The share of value-added products in the overall business is sought to be raised to 40 per cent from the existing 24 per cent, said Nara.

The company will be finalising a joint venture with a foreign entity to launch a yogurt brand in the next month, she added. The company currently makes a full line of dairy products, including fresh milk, curd and butter.

To hasten its pan-India plan, it has also launched a new branding exercise as it completes 25 years in the business. Sambasive Ra, its president, said they have a 10-12 per cent share in all the markets where they were present, and this was growing.

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