Dodla Dairy Acquired Land in Maharashtra for Expansion
Dodla Dairy Ltd (BSE - 543306, NSE - DODLA, ISIN: INE021001019), one of India's leading integrated dairy companies, has announced that it has completed the acquisition of a land parcel admeasuring 35.23 acres at Itkal Village, Dharashiv District, Maharashtra. The company has a strong procurement setup in the state and this land acquisition is a step forward towards setting up an integrated plant for the surrounding Solapur district.
Commenting on the performance, Managing Director of Dodla Dairy, Mr Dodla Sunil Reddy said, “We are pleased to announce this land acquisition as it will help us enhance our foothold in the state of Maharashtra, a crucial geography from our supply chain perspective. At present, Dodla is procuring 2 lakh litres per day of milk from Maharashtra which is processed in our plants at Telangana and Andhra Pradesh. We intend to establish an integrated plant equipped with condensing as well as milk powder-making capabilities. With the addition of this capacity and capabilities, we will be able to improve our operational efficiency and expand our VAP portfolio.”
About the Company
Dodla Dairy Ltd is one of India’s leading integrated dairy companies incorporated in 1995. The company procures, processes, and sells milk and milk products. The Company’s product portfolio consists of Milk, Butter Milk, Ghee, Curd, Paneer, Flavoured Milk, Doodh Peda, Lassi, Ice Cream and Milk Based Sweets. The Company's procurement is centred in 5 states and products are available for purchase in 13 states and has 152 milk chilling centres/plants. The Company’s distribution and marketing operations are conducted through its 55+ sales offices, 2,620+ agents, 2,110+ milk and milk product distributors, 76 modern trade across India. Additionally, the company’s milk and dairy-based Value-added Products are also available through 626 ‘Dodla Retail Parlours’ as of June 30, 2024 and are spread across the states of Andhra Pradesh, Telangana, Tamil Nadu and Karnataka. The Company also has international operations in Uganda and Kenya.
The company has a market cap of Rs 7,789 crore with a PE ratio of 40, an ROE of 16 per cent and an ROCE of 22 per cent. The stock is up by 98 per cent from its 52-week low of Rs 655 per share. Investors should keep an eye on this small-cap stock.