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Heritage Foods Ltd is targeting a compounded annual growth rate of about 25 per cent, up from 15 per cent registered in the recent times, by expanding its value-added products portfolio.
The Hyderabad-based dairy major today launched its new premium range of ice-creams under the brand name Alpenvie targeting the young generation.
Nara Brahmani, Executive Director of Heritage Foods, said the company is in the process of consolidating its dairy business, after divesting stake in retail operations and acquiring dairy business from Reliance Industries.
Heritage Foods is a company promoted by the family members of Andhra Pradesh Chief Minister N Chandrababu Naidu and listed on the stock exchanges
Speaking at Heritage Fresh store here today, Brahmani, who draws experience from private equity and venture capital business, said: “We have acquired a couple of processing plants, one in Ludhiana and another in Visakhapatnam and are close to acquiring one more. We are open to some more acquisitions, and have appointed E&Y for due diligence.”
“As you are aware, acquisitions take time as a number of elements have come together and we need to get right valuations,” he said.
Referring to the launch of Alpenvie range, she said, “Targeted at college-goers and young adults, these wide range of treats are made with finest milk cream, fruits, nuts and chocolates. We expect our brand to grow to about 50,000 litres per day or to about Rs 230 crore over the next four years contributing towards our our Rs 6,000 crore revenue mission by 2022.”
“While value-added products, where we see significant growth coming from, currently account for 20 per cent of the total business, we expect this to grow to about 40 per cent,” she explained.
The premium ice-cream range consists of out-of-home impulse products made with finest ingredients. These are being offered in the price range of Rs 10 to Rs 45.
The company plans to invest Rs 80 crore on these products over the next four years. Initially, these products will be available in key metros in the South and West and eventually be available pan-India.
Set up in 1992, Heritage now has two businesses — dairy and renewable energy, the latter with an installed capacity of 10.40 MW. The company operates cattle feed business through its subsidiary Heritage Nutrivet Ltd.
The company, which operates across 15 States, handles 16 own processing plants and 3 leased ones. The installed capacity of milk processing is 20.9 lakh litres per day and about 2.5 lakh litres per day from leased plants. The company, with a significant presence in the South, is expanding in the North and Western parts of the country.
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