Heritage Foods is in talks with an international firm to establish a special purpose vehicle for expanding the portfolio of its value added products.
“We are in discussions with a multinational company, which is not present in India at the moment, said Brahmani Nara, executive director, Heritage Foods. “They are one of the largest private curd brands.”
“The details of the new venture will be announced in the next few days,” she said. The aim was to set up a joint venture with both having an equity stake.
“Initially, we will come out with flavoured yogurt.”
Ms. Nara said the firm was keen on enhancing the contribution of value added products from the current 24% to 40% in the next five years through the already available and new products.
Heritage Foods was also looking to achieve the target through organic and inorganic growth. On Thursday, the company announced the roll out of flavoured milk in seven flavours in PET bottles.
Heritage Foods will also be investing about ₹90 crore during this fiscal in capacity expansion, she said.
Regarding the acquisition of Reliance Retail’s dairy business, she said the transaction was completed recently and they would start reaping the benefits from the current fiscal.
“We are currently present in 15 states and the acquisition has enabled us to enter five more states. Along with brand Heritage, we now have two more brands — Dairy Life and Dairy Pure — in our basket.