Hyderabad-based Heritage Foods Ltd will acquire Mohali-based dairy products firm Vaman Milk Foods Pvt. Ltd in an all-cash deal.
The transaction will help Heritage Foods expand its dairy business, the company said in a stock exchange disclosure. It did not reveal the deal value.
Incorporated in 2015, Vaman Milk Foods is engaged in processing and packing milk and milk products. It registered a turnover of Rs 12.96 crore in the year ended 31 March 2017.
Heritage Foods, which is owned by family members of Andhra Pradesh chief minister N Chandrababu Naidu, was founded in 1992. It has three business verticals—dairy, renewable energy and veterinary care.
In April 2017, Heritage Foods acquired the dairy business of Reliance Retail Ltd, in a bid to expand its presence to Punjab, Uttarakhand and Rajasthan.
In May 2016, Heritage Foods Ltd had agreed to acquire assets of Teja Dairy.
In November 2016, Kishore Biyani-led Future Retail Ltd agreed to acquire the retail and allied businesses of Heritage Foods Ltd. The deal resulted in Heritage Foods exiting from retail, bakery and agriculture businesses.
The south Indian market accounts for close to four-fifths of the company’s revenues from dairy business. In financial year 2016-17, the firm’s dairy division posted revenues of Rs 1,870 crore and a profit after tax of Rs 121.7 crore.
In the same space, Hyderabad-headquartered Dodla Dairy Ltd raised Rs 321 crore ($50 million) from TPG Growth in May. Odisha-based dairy startup Milk Mantra Dairy recently raised its Series D round of funding led by Neev Fund.