Dodla Dairy Ltd acquires HR Food Processing for US$31.6M

INDIA – Dodla Dairy Ltd., a dairy manufacturer, has announced its decision to acquire HR Food Processing Pvt. Ltd., the company behind the Osam brand of milk and dairy products, in a ₹271 crore all-cash deal aimed at strengthening its presence in eastern India.

The Hyderabad-based dairy major said it will acquire a 100% stake in HR Food Processing. The transaction, expected to be completed within one to two months, includes an enterprise value of ₹247.2 crore and net cash of ₹23.8 crore.

The objective of acquisition is to enter new geographical markets, particularly in Eastern India. Since HR Food Processing operates in a similar line of business, this strategic move is expected to strengthen Dodla Dairys presence in Bihar, Jharkhand, West Bengal, and the broader Eastern Indian dairy market.

“This acquisition aligns with our goal of becoming a pan-India dairy company,” said Dodla Dairy Managing Director Sunil Reddy. “Eastern India presents an exciting opportunity with faster-than-average growth in dairy consumption, driven by high urbanization potential and robust economic growth.”

The move is part of Dodla’s broader expansion strategy, tapping into underpenetrated but rapidly growing regional markets.

HR Food Processing operates an extensive procurement and distribution network, sourcing from over 25,000 dairy farmers and processing approximately 1.1 lakh litres of milk per day.

The company manages 1,000 milk collection centres and 19 chilling centers, and has a strong market footprint across Bihar, Jharkhand, and neighboring states. Its revenue for FY 2024-25 stood at ₹282.6 crore.

Dodla Dairy reports US$7.94 M net profit in Q4 2025

Recently, the company reported a 45.12 per cent annual growth in its consolidated net profit at Rs 67.96 crore (US$7.94 million) in its 4^th quarter that ended March 2025.

Revenue from operations grew by 15.51 per cent to Rs 909.62 crore (US$106.43 million) compared to Rs 787.44 crore (US$92.08 million) during the same period a year ago.

Dodla Dairy Managing Director, Dodla Sunil Reddy, said, “I am pleased to share that during FY25, the company’s profit after tax (PAT) surpassed the Rs 200 crore milestone, reaching Rs 259.9 crore, on the back of a topline of Rs 3.1 crore, which grew at a healthy rate of 19 per cent. This robust performance was primarily driven by faster growth in value-added products (VAP) and healthy performance in Africa, as well as the Orgafeed business.”

EBITDA increased by 10.74% YoY to Rs 83.50 crore in the fourth quarter of FY25. EBITDA margin improved to 9.2% in Q4 FY25 as against 9.6% in Q4 FY24.

Profit before tax (PBT) was at Rs 90.28 crore (US$10.55 million), registering a growth of 40.75% from Rs 64.14 crore (US$ 7.50 million) recorded in the corresponding quarter previous year.

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