Heritage Foods forays into Punjab

Andhra Pradesh-based Heritage Foods has forayed into Punjab. The company has started acquiring milk-processing units in Punjab. It will sell its products via Reliance’s retail and wholesale channels in various cities of Punjab.

Heritage Foods has sold its own retail business and acquired Reliance Retail’s dairy business. This move will help Heritage Foods to expand its presence in the dairy business in the coming years, mainly in the northern region.

According to Brahmani Nara, Executive Director, Heritage Foods Ltd., “Heritage Foods has over 120 outlets in the South, but with the business going to Future Retail, Heritage’s dairy products gain shelf space in a much larger chain. Along with that of Reliance Retail’s chain, it will be present in over 1,000 outlets pan India.”

On June 1, the company announced the launch of new range of flavoured milk. It is eyeing more value-added products in the near future.

The company is aiming at revenue generation of Rs.6000 crore by FY2020, almost thrice than the current revenue. It has also planned capex worth Rs.30 crore for capacity expansion and launch of new products. In FY17, it generated 68 per cent revenue from dairy business and 28 per cent from retail business.

Heritage Foods is mainly Andhra Pradesh-based company engaged in different segments, viz. dairy, retail, agri, bakery and renewable energy. Heritage Foods handles about 14 lakh litres of milk daily and has operations across 15 states.

In today’s trade, the stock opened at Rs.1130.45 and touched intra-day high and low of Rs.1140.20 and Rs.1114, respectively, on the BSE.