Companies

Heritage Foods completes acquisition of Reliance Retail’s dairy business

| Updated on: Jan 15, 2018

Heritage Foods Ltd has completed the acquisition of dairy business of Reliance Retail Ltd which the company had announced during October 2016.

The company in a regulatory filing has informed BSE that it has received approval from Competition Commission of India for the acquisition of the dairy business, which enables it to further consolidate the dairy business segment.

The company promoted by the family members of Andhra Pradesh Chief minister N Chandrababu Naidu, had executed an agreement to acquire the dairy business of RRL through slump sale.

RRL had been operating a pan-India dairy procurement, processing and distribution platform under Dairy Life and Dairy Pure brands, which offer a wide variety of products such as packaged milk, curd, sweetners and skimmed milk powder.

RRL dairy business has been operational since 2007 and generated a revenue of Rs 553 crore during 2015-16. It had been procuring 2.25 lakh litres of milk per day from 2,400 villages across 10 states.

Post the transaction, Heritage had announced that RRL will continue to trade in dairy products including Heritage dairy product range though its retail and wholesale channels.

During November 2016, in yet another major development, Future Retail had announced that it had proposed to consolidate the retail and allied business of Heritage Foods.

The retail business of Heritage Foods includes popular Heritage store chain of 124 stores in three southern cities of Hyderabad, Bengaluru and Chennai.

Heritage Foods shares closed at Rs 1097.20, up 2.05 per cent on Thursday

Published on April 13, 2017
COMMENTS
This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you