1. Dodla Dairy Ltd is an integrated dairy company based in South India, mainly deriving all of its income from the processing and retailing of milk (full cream, standardized, toned and double toned) and produces high value dairy products. added (“VAP”) such as curd, ultra-high temperature (“UHT”) processed milk, ghee, butter, flavored milk and ice cream, among others. The Company also manufactures and sells feeds to farmers through its supply network.
2. The Company is the second largest in terms of market presence across India among private dairy players with a significant presence in the South Indian region (Source: CRISIL Report).
3. The Company’s processing operations are spread over 13 processing plants (including 12 owned and one leased) located in the states of Andhra Pradesh, Telangana, Karnataka and Tamil Nadu in India with a total installed capacity of 1 , 70 MLPD, excluding two SMP factories at Nellore and Vedasandur which have a total installed capacity of 15,000 and 10,000 kg per day respectively.
4. Among the private dairy players with a significant presence in the South Indian region, Dodla Dairy Ltd is the third in terms of milk supply per day with an average supply of 1.03 million liters of raw milk per day. day (“MLPD”) as of March 31, 2021 with approximately 109,670 farmers in 7,003 villages through 6,771 VLCCs, more than 283 milk supply circuits, 232 dairy farms and 94 cooling centers as of March 31, 2021 spread across the states of Andhra Pradesh, Telangana, Tamil Nadu, Karnataka and Maharashtra.
5. The Company began its overseas operations in fiscal 2015 with the acquisition of the businesses of Hillside Dairy and Agriculture Limited through its subsidiary Lakeside Dairy Limited in Africa. Packaged milk and dairy-based VAPs for retail sale are produced from its processing plant in Uganda and are distributed through 23 distributors and 11 “Dodla Retail Parlors”. In Kenya, distribution is done through 43 distribution agents and 56 distributors.
6. The Indian operations of the Company are conducted under the brands “Dodla Dairy”, “Dodla” and “KC +”. The Company’s foreign operations are carried out under the “Dodla Dairy”, “Dairy Top” and “Dodla +” brands.
7. The company has incurred cumulative captive expenditure of Rs. 264.48 crore over the past three years for the commissioning of a new processing plant in Rajahmundry in Andhra Pradesh, the acquisition of the processing plants in Batlagundu and Vedasandur in Tamil Nadu from KC Dairy Products Private Limited, the acquisition of the feed and mixing plant by Orgafeed Private Limited in Kadapa in Andhra Pradesh and the establishment of new VLCCs. The company has successfully integrated acquisitions into its operations and this is reflected in its high return on capital employed of 17.01% for fiscal 2020, which is the best among its peers.
8. The Company aims to continue investing in existing manufacturing technologies to develop new capabilities to support milk processing operations and for the automation of its Kurnool processing plant.
9. The company is well positioned to explore the expected opportunities of several industry growth drivers such as (i) an increasing young population of structural factors, health trend, high protein diet, increased demand of value-added products and aggressive quick-service restaurant (QSR) growth plans (ii) resumption of economic growth and return of demand from the HORECA segment (industry is expected to grow at a CAGR of 10-11% between FY21 to FY25); (iii) Integrated value products including flavored milk, ice cream, yogurt, cheese and whey (likely to overtake other segments and grow faster at 14-16% between FY21 and FY25); (iv) Traditional value-added products and milk (expected increase of 10 to 12% and 6 to 8% between the same period).
10. The company raises the fund through an initial public offering for (i) the repayment and / or early repayment of the debt, and (ii) the financing of the capital expenditure of the company.