Dodla Dairy Ltd

Dodla Dairy Ltd is a leading private dairy company engaged in the business of processing of milk and preparation of milk products and its allied products. The company is also having overseas operations in Africa. The company offers a range of milk products, such as milk, butter milk, curd, ice cream, butter, ghee, paneer, flavoured milk, sweets and doodhpeda. It offers different types of milk in pouches, such as Full Cream Milk, Toned Milk, Standardised Milk, Double Toned Milk and UHT Milk. Its ghee is extracted from cow and buffalo milk and are sold in jars, pouches, sachet, and tin. Its sterilized flavored milk is available in seven flavors, such as badam, strawberry, pista, vanilla, elaichi, chocolate and pineapple. It also manufactures milk-based sweets, such as gulab jamun, basundhi and junnu. It has approximately 94 milk chilling centers. Its products are sold under the DodlaDairy brand name in India. The company has approximately 13 milk processing plants across the states of Andhra Pradesh, Telangana, Karnataka and Tamil Nadu. Production in the Kenya acquisition is expected to begin in end of Q2FY2024.The company follows an integrated business model, which involves engaging in various stages of the dairy value chain. From procuring milk from farmers to processing and distributing dairy products, Dodla Dairy maintains control over multiple aspects of the value chain. This approach enables the company to ensure quality standards, streamline operations, and efficiently manage the supply chain.Substantial YoY increase in revenue from value-added products and fat & fat-based products, reaching Rs7,408 million was seen during FY23, reflecting a growth of 26.0 per cent compared to the previous year. Buy on declines for target price of Rs1,000 in medium term.