India | From village-level milk procurement networks in India to processing operations in East Africa, Dodla Dairy has built a business spanning milk collection, processing, distribution and value-added dairy products. According to CEO Venkat Krishna Reddy Busireddy, the company’s growth strategy rests on three priorities: maintaining quality, building direct relationships with farmers and expanding into emerging markets.
Founded in 1998, Dodla Dairy began operations in Chennai before expanding into Bengaluru and Hyderabad. The company has since developed a wider presence across India and entered international markets, including Uganda and Kenya.
In an interview with The CEO Magazine, Busireddy discussed the company’s expansion strategy, its approach to milk procurement and processing, and the growing importance of eastern India to the dairy industry.
From a regional dairy to a multi-state business
Dodla Dairy’s network, as described in the interview, includes operations across 15 Indian states, 18 processing plants and approximately 300 milk chilling centres. The company also operates processing facilities in Uganda and Kenya, with a further African plant planned, according to the article.
Its domestic retail network includes more than 1,200 Dodla Retail Parlours selling products such as milk, ice cream, ghee, paneer, buttermilk and lassi.
Busireddy, who previously worked with Amul and joined Dodla Dairy as its first employee, said the company’s expansion has involved both greenfield projects and acquisitions of existing facilities.
Greenfield development allows the company to establish new infrastructure, while acquiring existing dairies can provide a faster entry into unfamiliar markets. The company has used the latter approach for operations in Africa and acquisitions in Jharkhand and Tamil Nadu, he explained.
Milk procurement remains central to growth
According to Busireddy, Dodla Dairy procures approximately 1.7 million litres of fresh milk daily from farmers across five states.
Village-level collection centres are central to this system, connecting milk producers with the company’s processing infrastructure. The model enables Dodla to manage procurement, processing and marketing as interconnected parts of its business.
Busireddy said the digitisation of farmer payments has also improved transparency. The transition from cash payments carried to villages by supervisors to automated digital transactions has reduced logistical challenges and helped strengthen relationships with milk suppliers.
For dairy businesses, reliable procurement and transparent payments are important not only for maintaining supply but also for building long-term relationships with farmers.
Why eastern India is attracting attention
Dodla Dairy is looking towards eastern India as a potential growth market, particularly Bihar and Jharkhand.
Busireddy believes the region offers opportunities for organised dairy businesses as demand and the dairy sector continue to develop. Compared with the more established private dairy markets in southern India, he sees room for expansion in the east.
The company’s acquisitions in Jharkhand form part of this broader strategy. Its future performance in the region will depend on factors including milk availability, procurement infrastructure, competition, consumer demand and the development of distribution networks.
Expanding beyond liquid milk
Value-added products are another important part of Dodla Dairy’s business model.
The company markets paneer, curd, ghee, ice cream and other dairy products alongside packaged milk. Busireddy highlighted paneer as an example of a category that has gained wider acceptance beyond its traditional strongholds in northern India.
Also Read: India’s Milk Production Is Rising Faster Than Consumption
He also said curd accounts for close to 30% of the company’s sales, with most of this business concentrated in southern India.
These categories allow dairy processors to diversify their product mix and respond to different regional consumption patterns. Their contribution to growth, however, depends on processing capabilities, cold-chain infrastructure, pricing and distribution.
Building an international presence in Africa
Dodla Dairy’s international expansion began in 2013, when the company started exploring opportunities outside India.
According to Busireddy, an existing processing plant in Uganda provided an entry point into the African market. The company subsequently expanded into Kenya after recognising the scale of demand there.
He said much of the Ugandan plant’s output was initially being supplied to Kenya, helping the company identify an opportunity to establish a processing presence in that market.
The African operations illustrate Dodla’s acquisition-led approach to international expansion, using existing infrastructure to enter markets rather than relying exclusively on new plant construction.
Quality before short-term gains
For Busireddy, quality remains the central principle guiding the company’s decisions.
He said Dodla’s integrated model—covering milk procurement, processing and sales—helps the company maintain greater control over its operations. Relationships with packaging suppliers and other business partners also form part of the wider supply chain.
In the interview, he emphasised that profitability should follow from doing the fundamentals correctly rather than take priority over product quality.
That approach is particularly relevant to the dairy industry, where product safety, consistency, freshness and consumer trust are essential to sustaining a brand.
The road ahead for Dodla Dairy
Dodla Dairy’s next phase of growth will involve balancing expansion with operational discipline. Its presence across multiple Indian states and two African markets offers opportunities to increase scale, while eastern India represents a potential avenue for further domestic growth.
The company’s experience also highlights the importance of connecting milk procurement with processing capacity, value-added products and reliable distribution.
For India’s dairy sector, the broader lesson is that growth involves more than increasing milk volumes. Strong farmer relationships, transparent procurement, quality management and products suited to regional markets remain critical to building a sustainable dairy business.
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