Heritage Foods Ltd. has completed the acquisition of the dairy business of Reliance Retail Ltd. (RRL). The company has informed BSE that it has received approval from Competition Commission of India for the acquisition of the dairy business, which enables it to further consolidate the dairy business segment. The company, promoted by family members of Andhra Pradesh Chief Minister N. Chandrababu Naidu, had executed an agreement to acquire the dairy business of RRL through slump sale. The retail business of Heritage Foods includes the popular Heritage store chain of 124 stores in three southern cities of Hyderabad, Bengaluru and Chennai. RRL’s dairy business operates a pan-India dairy procurement, processing and distribution platform under two brands, Dairy Life and Dairy Pure. It offers a wide variety of products such as packed milk, flavoured milk, butter, ghee, curd, dairy whitener, sweets and skimmed milk powder. It has been operational since 2007 and generated revenues of Rs.553 crore in FY 2015-16. Currently, it procures 2.25 lakh litre of milk per day from 2,400 villages in ten states. The managements of both companies believe that there exist strong synergies
between RRL’s dairy business and Heritage, with high growth potential in certain existing markets such as Hyderabad, Mumbai and Delhi and the National Capital Region (NCR), along with new opportunities in states such as Punjab, Uttarakhand and Rajasthan. After the transaction, RRL will continue to trade in dairy products, including
Heritage dairy products, through its retail and wholesale channels.