Dodla Dairy secures land for new integrated plant in Maharashtra

Dodla Dairy Limited has made a significant move in its expansion strategy by acquiring a 35.23-acre land parcel in Maharashtra‘s Dharashiv District. The company, listed on both the BSE and NSE under the codes 543306 and DODLA respectively, revealed the acquisition was aimed at establishing an integrated plant in the region to bolster its operations. The land is situated in Itkal Village, a location strategic to Dodla Dairy’s supply chain, enhancing its foothold in the state.

The Managing Director of Dodla Dairy, Mr. Dodla Sunil Reddy, indicated that this acquisition is a strategic move to strengthen their supply chain capabilities within Maharashtra, a vital region for their milk procurement activities. He stated that the company currently sources around 200,000 litres of milk per day from Maharashtra, which is processed at their facilities in Telangana and Andhra Pradesh. The planned integrated plant will include condensing and milk powder production facilities, which are expected to improve operational efficiency and diversify their value-added product (VAP) portfolio.

Dodla Dairy Limited, one of India‘s top integrated dairy companies, was incorporated in 1995. It has developed an extensive product portfolio that includes milk, buttermilk, ghee, curd, paneer, flavoured milk, doodh peda, lassi, ice cream, and milk-based sweets. The company has a robust presence in five states for milk procurement and distributes its products across 13 states through an extensive network of 152 milk chilling centres and plants. Dodla Dairy’s distribution operations also encompass 55 sales offices, over 2,620 agents, and more than 2,110 milk and milk product distributors across India.

In addition to its domestic operations, Dodla Dairy operates in international markets such as Uganda and Kenya. As of 30th June 2024, Dodla Dairy operated 626 Dodla Retail Parlours across Andhra Pradesh, Telangana, Tamil Nadu, and Karnataka, demonstrating its significant market penetration and growth potential.

Expert Opinion: Strategic Expansion and Market Impact

Industry experts believe Dodla Dairy’s expansion in Maharashtra is a calculated move to tap into the state’s robust dairy supply chain. Analysts highlight that Maharashtra’s vast dairy sector is an attractive market due to its accessibility and established procurement channels. The new facility in Dharashiv is expected to reduce logistical costs significantly, streamline operations, and enhance Dodla’s capacity to introduce more value-added products. This move, they note, aligns with Dodla Dairy’s broader growth strategy of scaling up both domestically and internationally.