Heritage Foods to add five more milk processing units

HYDERABAD: Andhra Pradesh Chief Minister N Chandrababu Naidu-founded dairy and retail firm Heritage Foods plans to add five more milk processing plants in the next five years, at an investment of Rs 150 crore as part of its strategy to achieve $1-billion turnover by 2022.
Speaking on the occasion of Heritage Foods' silver jubilee celebrations, president Samba Siva Rao said: "We will be setting up at least five more processing plants in the coming five years with capacities of nearly 50,000-70,000 litres a day each, involving an investment of Rs 25-30 crore per plant."

The company is looking to increase the capacities of existing 14 plants, which together have a milk processing capacity of nearly 19 lakh litres of milk a day.

INCREASING CAPACITY
"The capacity expansion is part of our strategy to achieve Rs 6,000 crore or $1 billion in turnover by 2022," said Heritage Food's executive director Nara Brahmani.

He added that the investments would be met through debt financing and internal accruals.

The listed diary firm is also increasing revenue contribution of value-added products to the turnover from the current 24% to 40%.

The company has, meanwhile, unveiled a new logo and would undertake the rebranding exercise for Reliance Dairy as well in some markets that it acquired couple of months ago.