Heritage Foods Moves to Integrate Livo Yogurt Business
Heritage Foods Limited has sanctioned the merger of its wholly owned subsidiary, Heritage Novandie Foods Limited, with Heritage Foods Limited. Heritage Novandie Foods manages the yogurt segment of the company through the Livo brand, which is one of the top five yogurt brands in India.
The suggested merger seeks to enhance Heritage Foods' value-added dairy (VAP) platform, simplify its organizational framework, and boost operational efficiency as the company grows its branded dairy offerings.
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The incorporation of Livo into Heritage Foods’ larger dairy operations is anticipated to enable unified brand growth and improved alignment with the firm’s consumer access and distribution strengths.
Value-added products are becoming more significant in Heritage Foods’ range. Without ghee and butter, VAP accounted for 35.4 percent of dairy revenue in Q2 FY27 and 39.6 percent in H1 FY27, up from 31.3 percent and 33.7 percent, respectively, in the same periods last year.
The firm intends to boost the share of value-added products to around 50 percent of its dairy income within the next three years. The approach aims to establish a more varied revenue structure and lessen reliance on liquid milk, which is more susceptible to seasonal demand trends and commodity-related variations.
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The suggested merger is anticipated to streamline the Group’s corporate framework by removing an extra legal entity and decreasing redundant statutory, regulatory, and administrative obligations.
The company states that the consolidation aims to allow for more effective use of financial resources and cash flows, promote unified management and quicker decision-making, and create operational synergies by optimizing resources, production abilities, and business processes. The merger is also anticipated to aid in streamlining administrative and operational expenses while enhancing collaboration throughout the organization.
Commenting on the Results, Brahmani Nara, Executive Director says, “Our focus remains on building a stronger, more integrated and future-ready dairy business”.
“The proposed amalgamation of Heritage Novandie Foods is an important step in strengthening our value-added dairy platform, while simplifying the overall structure and enabling greater alignment across the business”.
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“As we continue to scale differentiated and branded dairy products, we believe this integration will further strengthen our platform for sustainable growth and enhance operational efficiency over the long term”.