India-based Dodla Dairy has agreed to acquire local peer HR Food Processing for Rs2.71bn ($31.6m).

In a stock exchange filing today (July 11, 2025), the company termed the acquisition "strategic", noting the deal will expand its market presence in eastern India.

Dodla Dairy managing director Dodla Sunil Reddy said: “As a market, eastern India is a very exciting market for the dairy industry with faster growth as compared to the national average. This market supports a large population and milk consumption has immense headroom for growth driven by high urbanisation potential and strong GDP growth.”

HR Food Processing, known for its Osam brand, operates in Bihar, Jharkhand and other eastern Indian dairy markets.

The company runs a “vertically integrated” supply chain. Osam’s network includes over 25,000 dairy farmers, with a daily milk processing capacity of about 110,000 litres, facilitated by 1,000 collection centres and 19 chilling facilities.

Its two processing plants can handle up to 180,000 litres of milk daily, the statement added.

“We see tremendous synergies with Osam, which, when combined with Dodla's strong operational experience, will enable us to take this to the next level,” Reddy added.

For the financial year 2025, Osam reported revenues of Rs2.83bn, achieving a 25% gross margin and a 5% EBITDA margin, the filing added.  

Milk made up 72% of its sales, with the remaining 28% from value-added products like curd, lassi, paneer, sweets, ghee, and other items.

Upon completion of the acquisition, HR Food Processing will function as a wholly owned subsidiary of Dodla Dairy. The company’s operations are limited to India.

Founded in 1995, Dodla Dairy is involved in procuring, processing and distributing milk and dairy products. Its offerings include milk, buttermilk, ghee, curd, paneer, flavoured milk, doodh peda, lassi, ice cream, and milk-based sweets.

Dodla Dairy’s procurement activities span five states, with its products sold across 13 states, supported by 190 milk chilling centres and plants.

As of 31 March, the company operated 839 retail parlours in Andhra Pradesh, Telangana, Tamil Nadu, and Karnataka. It also has operations in Uganda and Kenya.