Heritage Foods Ltd on Friday said it would acquire the dairy business of Reliance Retail Ltd (RRL).
A binding agreement for the acquisition, on a slump sale basis, was executed. The deal was subject to getting regulatory approvals and other conditions and procedures customary for such transactions.
The announcement by the Hyderabad firm, founded about 25 years ago by N. Chandrababu Naidu, currently Chief Minister of Andhra Pradesh, comes in the backdrop of reports last month about Future Group planning to buy retail business of Heritage Foods. “We confirm that both groups have been in discussion for possible business association,” Heritage said in a subsequent clarification to the stock exchange.
On the proposed acquisition, Heritage said the dairy business of RRL had been in operation since 2007 and had a revenue of Rs.553 crore in 2015-16. It operates a pan-India diary procurement, processing and distribution platform under ‘Dairy Life’ and ‘Dairy Pure’ brands. Packed and flavoured milk, butter, ghee, curd, dairy whitener, sweets figure in the product range. RRL’s dairy business currently procures 2.25 lakh litres of milk per day from 2,400 villages across 10 States.
