Dodla Dairy, an integrated dairy company, announced that the board of directors has approved the acquisition of the Osam brand milk and milk products company HR Food Processing at an equity value of ₹271 crore.
The cost of acquisition of 100% in the company includes enterprise value of ₹247.2 crore and net cash of ₹23.8 crore, it said, expecting the acquisition to be completed 1-2 months from the date of signing of share purchase and other agreements.
HR Food Processing operates under the premium brand ‘Osam‘ and has established a strong presence in Bihar, Jharkhand, and other eastern dairy markets of India. The company operates a vertically integrated supply chain that ensures full control and delivery of high-quality milk products to customers. Osam has a procurement network with more than 25,000 dairy farmers, processes around 1.1 lakh litres of milk per day, and has 1000 collection centers and 19 chilling centers. The two operational processing plants has an installed capacity to process 1.8 LLPD of milk.
During FY25, Osam recorded revenues of Rs. 2,826 million with a 25% gross margin and 5% EBITDA margin. Milk constituted 72% of the sales, while the remaining 28% came from various VAP products, including curd, lassi, paneer, sweets, ghee and others.
Managing Director of Dodla Dairy, Dodla Sunil Reddy said, “We are thrilled to announce the proposed acquisition of Osam, marking a significant milestone in Dodla’s journey. This strategic move underscores our commitment to becoming a Pan-India dairy company. As a market, Eastern India is a very exciting market for the dairy industry with faster growth as compared to the national average. This market supports a large population, & milk consumption has immense headroom for growth driven by high urbanization potential and strong GDP growth. We see tremendous synergies with Osam, which, when combined with Dodla’s strong operational experience, will enable us to take this to the next level.”
