Dodla Dairy chalks out growth strategy, looking to go global

M Somasekhar Hyderabad | Updated on January 09, 2018

The ₹1,410-crore Dodla Dairy Ltd has chalked out a growth strategy based on greenfield units and acquisitions.

The Hyderabad-headquartered company is confident of closing the present fiscal at around ₹1,700 crore turnover. It has consolidated in the southern States and is looking at new countries in Africa for expansion, said BVK Reddy, Chief Executive Officer.

In its two decade journey, Dodla Dairy has emerged second to Heritage among the top dairies in the private sector that include Tirumala, Jersey, Creamline and so on, in Telangana and Andhra Pradesh (AP) with around 10.5 lakh litres per day sales, he told BusinessLine.

New unit

Dodla Dairy is setting up a two-lakh-litres/per day capacity greenfield unit in Kathipudi, between Visakhapatnam and Rajahmundry in east Godavari district of AP.

The capital investment will be around ₹60 crore. Land has already been acquired and construction will begin this month. It will be operational by December 2018, Reddy said.

The company’s latest unit in Choutuppal on the outskirts of Hyderabad is operating at full capacity. The one-lakh-litre/day capacity plant has the latest equipment and facilities and has seen an investment of ₹90 crore, he said.

South scene

Dodla Dairy has emerged as the number one in private sector and after Nandini of the Karnataka State with a supply of 5 lakh litres per day. The plant in Koppal near Hospet, two chilling centres and two packing stations serve the geography well, he said.

In Tamil Nadu, the company had acquired a unit of A1 Dairy in Palakode of Dharmapuri district with capacity of one lakh litres/day. Some parts of the State are traditionally being served from the Nellore plant since 1998.

Global growth

Dodla is exploring expansion and acquisition options for the African and European markets. It started with buying a unit in Uganda. “We are looking at other countries like Kenya and also Yugoslavia in the near term,” said Reddy.

In addition to milk products, the company also markets butter, ghee, paneer, curd, butter milk and other products

Published on November 17, 2017

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