INDIA – Dodla Dairy, an Indian multinational dairy company has announced the acquisition of Karnataka-based Sri Krishna Milks (SKMPL) for Rs 50 crore (US$ 6.45 million) to expand its business.
The dairy company says it plans to expand its footprint beyond the traditional stronghold of South India and establish a pan-India footprint.
The closing of the deal and transfer of assets and management are expected to be concluded in around two months from the date of the acquisition.
Sri Krishna Milks (SKMPL) is mainly into the manufacture and selling of dairy products. Its turnover in 2020-21 was Rs 67.27 crore (US$ 86.71 million).
The acquisition is well-timed as the Indian dairy market valued at US$146.39 billion in 2020 is expected to grow at a CAGR of 15.4% over the forecast period of 2021-2026, according to Expert Market Research.
The research firm attributes the growth of the dairy market to rising health consciousness and rapid urbanization and the cultural and social significance of milk and dairy products in major parts of the country.
Furthermore, integration of several technological innovations such as Automatic Milk Collection Station and Bulk Milk Cooling Units in animal husbandry to aid hygienic milk production and promote import and export activities.
Indian market is also facing a rise in demand for packaged dairy products and value-added products (VAP) such as ghee, curd, ghee, butter, and cheese, among others, in the domestic households, restaurants, and hotels which are expected to bolster the growth of the dairy industry.
Meanwhile, the Agricultural & Processed Food Products Export Development Authority (APEDA) has revealed that India has indisputably the world’s biggest dairy industry.
Last year, it produced close to 146.31 million tonnes of milk. The production capacity is 50% more than the US and three times as much as China, the much-heralded new growth champion of milk and value-added milk products in the world.
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