Quick Summary: Dodla Dairy Ltd. has approved the acquisition of HR Food Processing Pvt. Ltd. (Osam) for ₹271 crore in an all-cash deal. Osam, a dairy brand with a strong presence in Bihar and Jharkhand, will become a wholly owned subsidiary of Dodla Dairy. The acquisition includes a vertically integrated supply chain with 25,000+ farmers and two processing plants. In FY25, Osam reported revenue of ₹282.6 crore. This move strengthens Dodla’s presence in Eastern India and supports its goal of becoming a pan-India dairy company.
Full Article: Dodla Dairy Ltd., a leading integrated dairy company in India, has announced the approval of its acquisition of HR Food Processing Pvt. Ltd., which operates under the brand “Osam.” The deal involves acquiring 100% of Osam’s issued and paid-up share capital for ₹271 crore, subject to certain closing adjustments.
This acquisition values the company at ₹247.2 crore in enterprise value, along with ₹23.8 crore in net cash. Dodla Dairy will enter into a Share Purchase Agreement (SPA) and other necessary legal documents with Osam’s current promoters and shareholders. The deal is entirely cash-based and is expected to close within one to two months of signing the agreements, or as mutually agreed upon by the parties.
The acquisition is subject to certain conditions outlined in the SPA. Once completed, Osam will become a wholly owned subsidiary of Dodla Dairy Ltd.
Osam is a premium dairy brand with a strong presence in Bihar, Jharkhand, and other eastern regions of India. It operates a vertically integrated supply chain, working with over 25,000 dairy farmers. Osam processes around 1.1 lakh litres of milk daily and runs two plants with a total capacity of 1.8 lakh litres per day. The company also has 1,000 collection centers and 19 chilling centers.
In FY25, Osam reported revenues of ₹282.6 crore, with a gross margin of 25% and EBITDA margin of 5%. Milk made up 72% of the sales, while the rest came from value-added products like curd, lassi, paneer, sweets, and ghee.
Dodla Dairy’s Managing Director, Mr. Dodla Sunil Reddy, said this acquisition marks an important step in the company’s expansion strategy. He highlighted Eastern India’s strong growth potential in dairy consumption and emphasized the synergies between Osam and Dodla Dairy’s operations, which could drive future growth.