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November 1, 2016

Heritage Foods acquires Reliance Retail’s dairy unit 

India's Heritage Foods has entered into an agreement to acquire the dairy business of Reliance Retail Ltd (RRL).  

India’s Heritage Foods has entered into an agreement to acquire the dairy business of Reliance Retail Ltd (RRL).  

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
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Reliance’s dairy business is a pan-Indian procurement, processing and distribution platform that was founded in 2007. It generated annual revenues of INR5.53bn (US$82.9m) in fiscal 2015/16 and processes 225,000 litres of milk per day. The unit’s milk collection includes 2,400 villages across ten Indian states. 

The acquisition will see Heritage take control of the Dairy Life and Dairy Pure brands spanning product segments including milk, butter, ghee, curd and dairy whitener. 

“There exist strong synergies between the dairy business of RRL and Heritage, with high growth potential in certain existing markets such as Hyderabad, Mumbai, and Delhi-NCR along with new opportunities in states such as Punjab, Uttarakhand, and Rajasthan,” Heritage said in a filing with the Bombay Stock Exchange. 

Following the transaction, RRL’s dairy business will continue to trade in dairy products – integrating Heritage’s existing dairy operations into the business through its retail and wholesale channels. 

The purchase is being conducted through a “slump sale” for lump sum consideration but the company did not reveal the value of the transaction. It remains subject to regulatory approval and other customary conditions, Heritage said. 

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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