Future Retail Has Announced Buying Heritage Foods

Kishore Biyani’s Future Retail has announced buying Heritage Foods retail business.

India: Kishore Biyani’s Future Retail has announced buying of Heritage Foods’ owned by Chandrababu Naidu for around USD46.15 Million. The deal will be funded by shares and cash of Future Retail. Though, the deal is a win-win situation for both the companies, but Heritage Foods will be the immediate beneficiary of the deal. The deal will increase the foothold of Future Retail through Heritage Foods' 100 stores network in Chennai, Bangalore and Hyderabad.

The Heritage Group was founded in the year 1992 by Mr. Nara Chandrababu Naidu, the company is one of the fastest growing Companies in India, and operates with its six-business divisions which includes Dairy, Agri, Retail, Renewable Energy, Bakery, and VetCa under its flagship Company called Heritage Foods Limited.

According to TechSci Research, the market for dairy products has been growing at a fast pace and Indian market has a huge potential as the companies requires different dairy products for their value added product segment and the dairy sector is likely to witness huge investments in the coming years which will help the domestic and the global players to earn significant revenues from this sector. Due to continuously increasing population in India the demand for the milk and dairy products is increasing which is pushing the dairies to expand their milk operations in order to meet the demands. Companies are opening such factories which are equipped with modern facilities so that they can offer value added products to the consumers. The companies in order to maximize the profits should offer its dairy products to the newer markets and regions.

According to a recent report published by TechSci Research, “India Dairy Products Market, Forecast and Opportunities, 2011 – 2021”, the market for dairy products in India is projected to grow at a CAGR of over 7% during 2016 - 2021. In 2015, North India dominated the country’s dairy products market, on account of increasing per capita expenditure, rising youth population, introduction of value added dairy products, changing consumption patterns, and growing penetration of international players. India dairy products market is witnessing a shift towards healthier products such as probiotic drinks, yogurts, etc. Few of the leading players operating in India dairy products market include Gujarat Cooperative Milk Marketing Federation Ltd., National Dairy Development Board, Karnataka Cooperative Milk Producers Federation Ltd., and Tamil Nadu Co-operative Milk Producers' Federation Limited, among others.