Heritage Foods, a leading dairy company, has set a revenue target of Rs 6,000-crore by year 2024 as against year 2022 envisaged earlier.

For the financial year 2019 on a consolidated basis, the net turnover of the company grew by six per cent to Rs 2,515 crore compared to last year.

Speaking to analysts in a recently held earnings call, President of Heritage Foods M Sambasiva Rao said though the situation has improved now, there was a glut in the market as milk prices have come down at the farm gate-level forcing the company to reduce the sales price for certain markets for milk and milk products as well, resulting in subdued growth.

Now, the markets have changed, situations too have and the glut scene disappeared, most of the opening stocks at the milk powder got exported, liquidated, he said.

“Having reviewed the situation we thought we should be able to deliver our targeted number of Rs 6000 crore. We did not want to alter our target number, our mission Rs 6000-crore remained as it is but the timeframe is what we moved a bit to 2024, so that we can deliver that number by then," he said replying to a query.

Rao further said the firm started expanding into more states. Earlier, the focus was on Andhra Pradesh and later Tamil Nadu, Karnataka, then Telangana and Maharashtra.

Later through the acquisition of the Reliance Dairy, Heritage spread its operations to Punjab, Haryana, Rajasthan for procurement, and Uttarakhand, Uttar Pradesh, Himachal, Delhi for sales, he said.

So with the expansion into the geographies, and introduction of more value-added products penetrating deeper into existing territoriesto tier-1, tier-2 markets,” Rao said.

“Possibly considering certain opportunities for acquisitions in the coming three to four years, we are reasonably sure we will achieve this number by 2024,” Rao said.

Rao, replying to another query on capex, said the company has planned to invest Rs 600 crore (about Rs 120 crore per annum) on infrastructure development in the next five years.

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