Dairy products maker Heritage Foods would focus more on growing its value added products division as part of its vision to generate Rs 6,000 crore revenue by 2022, said a top company official.
According to a PTI report: The Hyderabad-based firm founded by Andhra Pradesh Chief Minister N Chandrababu Naidu in 1992, garnered revenue of Rs 2,460 crore in financial year 2016-17 with turnover from dairy business at Rs 1,870 crore.
“Currently contribution of value added products to the group’s overall revenue is about 24 per cent.. We want that to increase to 40 per cent over the next five years,” Executive Director, Heritage Foods Ltd., Brahmani Nara was quoted by PTI as saying.
The company has also lined up Rs 90 crore investments under the capital expenditure plans for current financial year, she said.
“For the next five years we will be investing around Rs 150 crore. It will be used to set up five processing facilities,” she told PTI.
On the acquisition of dairy business from Reliance Retail, she said it would allow the company to enter five new states as part of its plan to be a Pan-India company by 2022.
“We will be entering into states like Punjab, Himachal Pradesh, Madhya Pradesh, Uttarakhand and Uttar Pradesh,” she was quoted by PTI as saying.
In April, Heritage Foods said it completed acquisition of dairy business of Reliance Retail.
The company also increased the marketing spent from the 0.5 per cent to 1 per cent of the total revenues to take up the rebranding exercise, she said.