Dodla Dairy Limited has informed the Exchange regarding a press release dated July 11, 2025, titled "Press Release Dodla Dairy Ltd. approved acquisition of HR Food Processing Pvt Ltd. ( Osam ) for Rs. 2,710 million".
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Dodla Dairy's board has approved acquiring 100% of HR Food Processing Pvt Ltd, which operates the premium dairy brand 'Osam' in Eastern India. The deal is valued at Rs. 2,710 million in equity (enterprise value of Rs. 2,472 million plus Rs. 238 million net cash) and is a fully cash transaction expected to close in 1-2 months. Osam, with FY25 revenues of Rs. 2,826 million, 25% gross margin and 5% EBITDA margin, processes 1.1 lakh litres of milk daily across Bihar, Jharkhand and other eastern markets, supported by 25,000+ farmers and 1,000 collection centers. The target will become a wholly owned subsidiary of Dodla upon completion. The acquisition marks Dodla's strategic push to become a Pan-India dairy player by entering the fast-growing eastern market.
This acquisition adds meaningful scale and a new geographic frontier for Dodla, but the modest 5% EBITDA margin of the target and fully cash-funded nature may pressure near-term cash flows. Shareholders should view this as a long-term growth play expanding into Eastern India, with synergies in procurement and distribution being key to value creation.