17 April 2017 | News | By NFS Correspondent
Heritage Foods inks agreement to acquire Reliance Retail’
Heritage Foods Limited executed a binding agreement to acquire the dairy business of Reliance Retail Limited (RRL) through slump sale. The proposed transaction is subject to regulatory approvals and other conditions and procedures that are customary for similar transactions.
RRL’s dairy business operates a pan-India dairy procurement, processing and distribution platform under the two brands, namely Dairy Life and Dairy Pure. It offers a wide variety of products such as packed milk, flavoured milk, butter, ghee, curd, dairy whitener, sweets and skimmed milk powder.
It has been operational since 2007 and generated revenue of Rs 553 crore in FY 2015- 16. Currently, it procures 2.25 lakh litre of milk per day from 2,400 villages in ten states.
The managements of both companies believe that there exist strong synergies between RRL’s dairy business and Heritage, with high growth potential in certain existing markets such as Hyderabad, Mumbai and Delhi and the National Capital Region (NCR), along with new opportunities in states such as Punjab, Uttarakhand and Rajasthan. Post the transaction, RRL will continue to trade in dairy products, including Heritage dairy products, through its retail and wholesale channels.