Hyderabad-Based Dodla Dairy Makes a Bold Move East

In a strategic acquisition that underscores its ambition to become a pan-India dairy powerhouse, Dodla Dairy has acquired 100% stake in Jharkhand's Osam Dairy for a cash consideration of Rs 271 crore. This deal, based on an enterprise value of Rs 247 crore and net cash of Rs 23.8 crore, is set to be completed within one or two months from the signing of the share purchase agreement (SPA).

A Milestone in Dodla Dairy's Growth Journey

Dodla Sunil Reddy, Managing Director of Dodla Dairy, hailed the acquisition as a milestone in the company's expansion strategy. "Eastern India presents a vibrant market for the dairy industry, with growth rates outpacing the national average. This region's large population and urbanisation potential offer significant opportunities for milk consumption growth," Reddy explained.

Strategic Synergies and Market Expansion

The acquisition is expected to bolster Dodla Dairy's presence in the eastern market, leveraging Osam Dairy's extensive network of over 25,000 farmers across Bihar, Jharkhand, and West Bengal. With 19 chilling centres, two operational plants, and a daily milk procurement of 1.1 lakhs, Osam Dairy's infrastructure and product portfolio align perfectly with Dodla's strategic goals.

Financial Highlights and Future Prospects

While Dodla Dairy reported revenues of Rs 3720 crore in the financial year 2024-25, Osam Dairy, under the leadership of Abhinav Shah and Harsh Thakkar, achieved Rs 283 crore in the same period. This acquisition not only enhances Dodla's milk procurement and processing capabilities but also sets the stage for long-term growth in a promising market.