Heritage Foods says to hit revenue target of Rs 6,000 crore by 2024

PTI Hyderabad | Updated on June 20, 2019 Published on June 20, 2019

M Sambasiva Rao, President, Heritage Foods

The net turnover of the company for FY19 grew by six per cent

Heritage Foods, a leading dairy company, has set a revenue target of Rs 6,000-crore by year 2024 as against year 2022 envisaged earlier.

For the financial year 2019 on a consolidated basis, the net turnover of the company grew by six per cent to Rs 2,515 crore compared to last year.

Speaking to analysts in a recently held earnings call, President of Heritage Foods M Sambasiva Rao said though the situation has improved now, there was a glut in the market as milk prices have come down at the farm gate-level forcing the company to reduce the sales price for certain markets for milk and milk products as well, resulting in subdued growth.

Now, the markets have changed, situations too have and the glut scene disappeared, most of the opening stocks at the milk powder got exported, liquidated, he said.

“Having reviewed the situation we thought we should be able to deliver our targeted number of Rs 6000 crore. We did not want to alter our target number, our mission Rs 6000-crore remained as it is but the timeframe is what we moved a bit to 2024, so that we can deliver that number by then," he said replying to a query.

Rao further said the firm started expanding into more states. Earlier, the focus was on Andhra Pradesh and later Tamil Nadu, Karnataka, then Telangana and Maharashtra.

Later through the acquisition of the Reliance Dairy, Heritage spread its operations to Punjab, Haryana, Rajasthan for procurement, and Uttarakhand, Uttar Pradesh, Himachal, Delhi for sales, he said.

So with the expansion into the geographies, and introduction of more value-added products penetrating deeper into existing territoriesto tier-1, tier-2 markets,” Rao said.

“Possibly considering certain opportunities for acquisitions in the coming three to four years, we are reasonably sure we will achieve this number by 2024,” Rao said.

Rao, replying to another query on capex, said the company has planned to invest Rs 600 crore (about Rs 120 crore per annum) on infrastructure development in the next five years.

Published on June 20, 2019

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!


Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.