Heritage Foods eyes expansion, launch of more value-added dairy products
Subscribe to enjoy similar stories. New Delhi: Heritage Foods plans to expand beyond South India, where it draws the bulk of its revenue from, and launch more value-added dairy products as demand for such items grows, a top official of the Hyderabad-based dairy company said. “Our core markets are the Telugu-speaking states.
The second would be adjacent markets, that is, Karnataka and Tamil Nadu. Then, you have developing or emerging markets. The core markets would be the slowest growing, and emerging markets the fastest.
In about three or four years, the shape of the business will be very different from what we have today," Srideep Kesavan, chief executive officer of Heritage Foods, said in an interview with Mint. Currently, the southern states account for over 87% of the company’s business. In FY24, Heritage Foods reported a revenue of ₹3,794 crore, with a profit ₹91 crore.
The company sells milk, cheese, butter, curd and paneer, among other products. Also read | Consumer goods companies go full throttle on rural hiring “About 12% comes from the rest of India—primarily from western Maharashtra and NCR (National Capital Region)-Haryana. We have capacity that would suffice for at least one or two years in these markets.
For example, during covid, we invested close to ₹100 crore in Maharashtra. In the north, we acquired a dairy business from Reliance Retail Ltd (RRL) in 2017-18. I don’t think we're going to make immediate greenfield investments in these markets.
If our growth trajectory remains strong, we will need to expand capacities in the next couple of years," Kesavan said. India’s dairy market was estimated at ₹13 trillion in 2023, per market research firm IMARC. The liquid milk segment accounted for approximately
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