Dodla Dairy Ltd., one of India’s leading integrated dairy companies, has announced the acquisition of HR Food Processing Pvt. Ltd., popularly known for its premium dairy brand ‘Osam’, for a total equity value of ₹2,710 million. The acquisition has been approved by the company’s board and is subject to customary closing conditions.
The all-cash deal reflects an enterprise value of ₹2,472 million, plus ₹238 million in net cash on Osam’s books. The transaction is expected to be completed within one to two months, following the signing of Share Purchase Agreements (SPAs) and other related documents. Once finalized, Osam will become a wholly owned subsidiary of Dodla Dairy.
Founded with a strong presence in Bihar, Jharkhand, and other eastern regions of India, Osam operates a robust vertically integrated supply chain. The company sources milk from over 25,000 farmers, operates 1,000 collection centers and 19 chilling centers, and runs two milk processing plants with a combined installed capacity of 1.8 lakh litres per day (LLPD).
In FY25, Osam reported revenue of ₹2,826 million, with milk contributing 72% of total sales. The remaining 28% came from a diverse range of value-added products (VAPs), including curd, lassi, paneer, ghee, and traditional Indian sweets. The company achieved a gross margin of 25% and an EBITDA margin of 5%.
Commenting on the acquisition, Mr. Dodla Sunil Reddy, Managing Director of Dodla Dairy, said:
“We are thrilled to announce the proposed acquisition of Osam, marking a significant milestone in Dodla’s journey. This strategic move underscores our commitment to becoming a Pan-India dairy company.”
He added that Eastern India represents a high-growth market for the dairy sector, driven by increasing urbanization and strong economic fundamentals. “We see tremendous synergies with Osam, which, when combined with Dodla’s strong operational experience, will enable us to take this to the next level,” he noted.
The acquisition is aligned with Dodla Dairy’s long-term strategy to expand its geographical reach and product portfolio, strengthening its position in India’s fast-growing dairy industry.