Heritage Foods Limited targets Rs 6,000 crore turnover by 2020
Heritage Foods Limited is planning to become a Rs 6,000 crore firm by the year 2020. Currently, the total turnover of Heritage Foods is Rs 2,073 crore, which is majorly earned with the sale of its dairy products, including Heritage Milk. Heritage Foods has delivered Heritage Milk and other products across 10 Indian states till date and still conducting the same operations. The Chairperson of Heritage Foods Limited, D Seetharamaiah said, “We have clearly set our target for 2020 to become a Rs 6,000 crore (USD 1 billion) company. While our operational mechanism is gearing up to achieve this goal, our strategies are aimed at increasing the sales of value-added products in our dairy business.”
Heritage Foods Limited was established in the year 1992 by the current Chief Minister of Andhra Pradesh, Nara Chandrababu Naidu. The Diary giant has achieved a turnover of more than Rs 2,000 last financial year. 22.98% stake and 10.20% stake in the company belongs to Nara Chandrababu’s wife, Nara Bhuvaneswari and son, Nara Lokesh respectively. Nara Bhuvaneswari is also the Vice Chairperson and Managing Director of Hyderabad-based Heritage Foods Limited. Lokesh’s wife, Nara Brahmani is the Executive Director of the company, who owns 0.44% stake. As a part of its efforts to reach $1 billion mark by 2020, the dairy major appointed an external consultant to guide it on all aspects of the business, including rationalisation of business operations, opportunity mapping, business restructuring, according to the company’s Annual Report for 2014-15. Though started as a dairy firm, Heritage has, over the years, diversified into other segments including retail, bakery and agri-business segments. At present, the company has operations across 10 states including Rajasthan, Haryana, Kerala, Odisha, Tamil Nadu, Karnataka and Maharashtra, in addition to Andhra Pradesh and Telangana. It entered into Delhi market last fiscal. During 2014-15, the dairy business accounted for Rs 1,555.9 crore, the highest among all the divisions. It procured 9.69 lakh litres per day (LLPD) milk with AP contributing 51 per cent followed by Maharashtra (18.5 per cent). Telangana accounted for just 10 per cent of the total milk procured by the company. “Currently, we procure milk from over 3 lakh farmers in southern and western India. Procurement of more milk gives us strength to grow,” the Chairperson said. Heritage is into value-added dairy products (VADP) space with 22 products which include paneer, curd, ice cream and flavoured milk. The retail segment through which it operates 92 Heritage Fresh multi-brand retail stores generated Rs 494 crore in revenues for the company, registering a year-on-year growth of 30.70 per cent. The agri-business which involves procurement of fresh fruits and vegetables from farmers has contributed Rs 84 crore to the top line. The company procured 1 lakh tonnes of fruits and vegetables in FY-15. “We expect FY16 to be an encouraging year with continued growth and improvement in margins. Going forward, we will increase the Heritage reach and simultaneously expand the range of value-added products,” said N Bhuvaneswari.
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