Dairy company Heritage Food Ltd. will look to grow its core business vertical of milk in north India, focus on value-added products and foray into yogurt as it prepares to achieve ₹6,000 crore in revenue in five years.
Announcing that the company, which on Monday celebrated its silver jubilee, is opting for a rebranding exercise, Executive Director Brahmani Nara said the emphasis would be on raising the contribution of value-added products to the turnover from existing 24% to 40% by 2022.
The manifold increase in revenue — turnover was about ₹2,380 crore in 2015-16 — would also come from growing the milk business in north India, where the acquisition of Reliance’s dairy business had helped Heritage Foods make inroads into new States, both in western and northern India.
With Heritage milk now sold in 15 States, she said the company would expand some of the existing 15 processing units and set up new ones.
The investment required would be met through a combination of internal accrual and debt.
Over the next five years, the company would be setting up five processing plants, each entailing an investment of ₹20 crore-₹30 crore, a senior executive said. By 2022, Heritage Foods would handle about 30 lakh litres of milk per day as against 18 lakh litres at present.
International partner
A leader in the curd segment, Heritage’s entry into the yogurt market would be through a joint venture with an international partner, Ms. Nara said, adding that details of the venture would likely be announced in a month.
The company would also shortly introduce new beverage offerings, bolstering the portfolio of value-added products, she said.
