Proposed amalgamation aims to simplify group structure, improve operational efficiency and support value-added dairy growth
HYDERABAD: Heritage Foods Ltd has approved the proposed amalgamation of its wholly owned subsidiary, Heritage Novandie Foods Limited, with the parent company to simplify its corporate structure and strengthen its value-added dairy business.
Heritage Novandie Foods operates the company’s yogurt business under the Livo brand, which Heritage Foods describes as one of India’s top five yogurt brands. The proposed merger is intended to integrate the business more closely with Heritage Foods’ distribution network, consumer reach and wider dairy operations.
According to the company, the integration is expected to improve resource utilisation, streamline management and reduce duplicated statutory, regulatory and administrative costs.
Value-added dairy products gain revenue share
The proposed amalgamation comes as Heritage Foods seeks to increase the contribution of value-added products to its overall business.
Value-added products, excluding ghee and butter, accounted for 35.4% of the company’s dairy revenue in Q2 FY2026–27, compared with 31.3% in the corresponding quarter a year earlier.
For the first half of FY2027, the category contributed 39.6% of revenue, up from 33.7% in the year-ago period.
Also Read: Uttar Pradesh Dairy Policy Offers Incentives of Up to ₹5 Crore for Eligible Processing Units
Heritage Foods aims to increase the contribution of value-added products to approximately 50% over the next three years.
The portfolio includes products such as yogurt, curd, paneer and other differentiated dairy offerings. These products provide opportunities to expand branded sales and diversify the company’s revenue mix.
Integration expected to support operational efficiency
Heritage Foods said bringing Heritage Novandie Foods into the parent company is expected to align the yogurt business with its existing operational and distribution infrastructure.
The proposed integration could help consolidate management processes and reduce duplication across corporate and administrative functions. Its implementation and the realisation of expected efficiencies will depend on the completion of the applicable merger procedures.
Executive Director Brahmani Nara said the proposed amalgamation would strengthen the company’s value-added dairy platform, improve operational efficiency and support its next phase of growth.
Strategy focuses on branded dairy products
Heritage Foods operates across 13 states, with a portfolio that includes milk, curd, butter, paneer and other dairy products.
The company’s strategy places greater emphasis on branded and differentiated products, which it expects to help diversify revenue and reduce relative dependence on liquid milk. Liquid milk businesses can be more exposed to seasonal demand patterns and fluctuations in procurement and selling prices.
The planned merger of Heritage Novandie Foods represents a corporate restructuring step within this broader strategy.
For the dairy industry, the development highlights how established processors are seeking to consolidate operations and expand value-added portfolios as competition in branded dairy products intensifies.
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