Dairy products company Heritage Foods Ltd has charted a major expansion plan which will see the company tripling its revenue to over Rs 6,000 crore by 2022, up from Rs 2,380 crore it logged during 2015-16.

It is expected to shortly finalise its numbers for 2016-17, which will see the retail business out of the network and the addition of dairy business through the acquisition of the Reliance dairy portfolio.

The company promoted by family members of Andhra Pradesh Chief Minister Nara Chandrababu Naidu, had divested its interest in the retail chain business and acquired the dairy business portfolio of Reliance to focus on the dairy business.

Nara Brahmani, Executive Director of Heritage Foods, said, “The company is undergoing a re-branding exercise, including packaging, targetting a wider customer base across India. Focussing on the brand promise of 'health & happiness,' our focus would continue to be farmers and how we are going to make their lives better.”

Interacting with media in the presence of the entire management of Heritage Foods, including Nara Bhuvaneshwari, Vice-Chairman and Managing Director, Brahmani said, “With a presence in 15 states, the company currently handles about 14 lakh litres of milk per day. We plan to double this over the next five years.”

Highlighting the company vision to become a Rs 6,000-crore company, which will mean a CAGR of 25 per cent, she said value-added products currently account for about 24 per cent of the business and this is proposed to be increased to 40 per cent over the next five years.

“While focussing on the long-term goals, we are looking at both the organic and inorganic growth of the company. We are at an advanced stage of finalising a deal with an MNC for a joint venture and expect to announce it soon after board approval,” she said.

Having acquired the dairy business of Reliance, Heritage now has access to five new markets, apart from the retail network of the Reliance and Future Group. Heritage had divested its retail business to Future group.

“Over the next four to five years, the company expects to set up about five more processing units, apart from expanding the existing units. Each new processing unit may entail an outlay of Rs 25-30 crore,” M Sambasiva Rao, President of Heritage Foods, said.

Focussing on self-reliance, Heritage Foods has developed renewable energy projects and already 55 per cent of its processing facilities are powered by renewable energy.

Heritage Foods shares were trading at Rs 1,151, up 1.33 per cent.