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March 4, 2020

India’s Heritage Foods announces move to sell dairy plant

Heritage Foods, the India-based dairy processor, has set out a move to sell one of its factories to a local peer.

By Dean Best

Heritage Foods, the India-based dairy processor, has set out a move to sell one of its factories to Amul Dairy.

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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.
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In a stock-exchange filing, Heritage said its board had approved the sale of “all the tangible assets” of the company’s dairy plant located in the Fatehgarh Sahib district of Punjab state.

Heritage said the disposal was “a part of our business rationalisation in northern India”.

The filing stated Amul Dairy was the buyer. The purchase price is to be INR212m (US$2.9m), exclusive of applicable taxes.

Speaking to Indian daily newspaper Business Standard, Gujarat Cooperative Milk Marketing Federation, which owns Amul, indicated it was weighing up the transaction.

“We are considering the proposal for acquisition. We are anyway expanding our operations in northern India, especially Punjab and need more production facilities as our sales are increasing,” R S Sodhi, GCMMF’S managing director, said.

In an investor presentation published in January on Heritage’s third-quarter financial results, the company said it had 77 chilling and 18 processing plants in India.

Heritage generated a turnover of INR24.82bn, up from INR23.44bn 12 months earlier. The company is targeting revenue of INR60bn by 2024 through a greater contribution to its sales of “value-added” products such as curd, buttermilk and lassi.

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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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