Hyderabad-based Heritage Foods will purchase assets and acquire the procurement & sales network from the Coimbatore-based Suguna Dairy Product (India) for a cash consideration of ₹2.81 crore. Suguna Dairy is engaged in the business of milk and milk products.
The acquisition will expand Heritage’s dairy business and strengthen South Tamil Nadu and part of Kerala markets, the company said in an announcement to the Bombay Stock Exchange.
Suguna has its own procurement of 15,000 litres per day (lpd) from two chilling centres and 10,000 lpd from business associates. It sells around 19,000 litres per day (milk 17,000 lpd & curd 2,000 kgpd) in South Tamil Nadu and Kerala markets, Heritage said in a communication to the Bombay Stock Exchange.
Heritage’s stock price on the BSE closed at ₹328.90, down by 0.84 per cent.