Dodla Dairy Limited — PPTs, 11-07-2025: Investor Presentation

1. Financial Highlights:

HR Food Processing Pvt Ltd (“Osam”) reported revenues of ₹282.6 Cr in FY25, with a gross profit margin improving from 16.8% in FY23 to 24.7% in FY25. The company processes ~6 metric tonnes of milk annually with an installed operational capacity of 1.8 lakh liters per day (LLPD). Osam’s revenue mix is ~72% from toned and high-fat milk and ~28% from value-added products (curd, lassi, paneer, sweets, ghee). The company has shown steady revenue growth from ₹248.6 Cr in FY23 to ₹282.6 Cr in FY25.

2. Strategic Initiatives & Growth Drivers:

Osam operates a vertically integrated supply chain with 3 processing plants (two operational, one upcoming), 19 chilling centers, and 1,000+ collection centers supported by a 25,000+ farmer network. The acquisition aligns with Dodla Dairy’s strategy to expand organically and inorganically, focusing on premiumization of value-added products (VAP) and strengthening milk procurement capabilities in high-growth eastern Indian markets (Bihar and Jharkhand).

3. Business Developments:

Dodla Dairy has approved a full acquisition of Osam through a cash transaction. Osam’s strong presence in Bihar and Jharkhand, with a 10% market share, complements Dodla’s existing footprint and provides access to high-quality infrastructure and a robust distribution network. The acquisition is expected to close within 1-2 months.

4. Market Position & Competitive Advantage:

Osam holds a solid position in the under-penetrated eastern Indian dairy market, which is growing faster than the national average with rising urbanization and income levels. Its vertically integrated model ensures quality control and supply chain efficiency. The company’s extensive farmer network and real-time cloud-based procurement system provide a competitive edge in milk sourcing and product delivery.

5. Investor Implications:

This acquisition offers Dodla Dairy positive growth potential by expanding its geographical reach and product portfolio in a high-growth region. The integration of Osam’s infrastructure and supply chain is likely to drive operational synergies and enhance market penetration. Investors should monitor execution risks related to integration and scaling in new markets.