1. Dodla Dairy Ltd is an integrated Dairy company based in South India, primarily deriving all of its revenue from process and selling retail milk (full cream, standardised, toned and double toned) and produce dairy based value added products ("VAPs") such as curd, Ultra-High Temperature processed ("UHT") milk, ghee, butter, flavoured milk and ice cream amongst others. The Company also manufacture and sell cattle feed to farmers through its procurement network.
2. The Company is the second highest in terms of market presence across all of India amongst private dairy players with a significant presence in the southern region of India (Source: CRISIL Report).
3. The Company's processing operations are spread across 13 processing plants (12 of which are owned and one is leased) located in the states of Andhra Pradesh, Telangana, Karnataka and Tamil Nadu in India with an aggregate installed capacity of 1.70 MLPD, excluding two SMP plants in Nellore and Vedasandur which have an aggregate installed capacity of 15,000 and 10,000 kgs per day respectively.
4. Amongst private dairy players with a significant presence in the southern region of India, Dodla Dairy Ltd is the third highest in terms of milk procurement per day with an average procurement of 1.03 million litres of raw milk per day ("MLPD") as of March 31, 2021 from approximately 109,670 farmers across 7,003 villages through 6,771 VLCCs, more than 283 milk procurement routes, 232 dairy farms and 94 chilling centres as of March 31, 2021 spread across the states of Andhra Pradesh, Telangana, Tamil Nadu, Karnataka and Maharashtra.
5. The Company commenced its overseas operations in fiscal 2015 through the acquisition of the operations of Hillside Dairy and Agriculture Limited through its subsidiary Lakeside Dairy Limited in Africa. Packaged milk and dairy based VAPs for retail are produced from its processing plant in Uganda and are distributed in through 23 distributors and 11 "Dodla Retail Parlours". In Kenya, distribution is done through 43 distribution agents and 56 distributors.
6. The Company's Indian operations are undertaken under the brands "Dodla Dairy", "Dodla" and "KC+". The Company's overseas operations are undertaken under the brands "Dodla Dairy", "Dairy Top" and "Dodla+".
7. The company has incurred cumulative captive expenditure of Rs. 264.48 Crore over the past three year towards commissioning a new processing plant at Rajahmundry in Andhra Pradesh, acquisition of the processing plants at Batlagundu and Vedasandur in Tamil Nadu from KC Dairy Products Private Limited, acquisition of the cattle feed and mixing plant by Orgafeed Private Limited at Kadapa in Andhra Pradesh and establishment of new VLCCs. The company has successfully integrated the acquisitions with its operation and the same gets reflected in its high return on capital employed of 17.01% for fiscal 2020, which is the best amongst its peers
8. The Company aim to continue investing in existing manufacturing technologies to build new capabilities to support milk processing operations and for the automation of its Kurnool processing plant.
9. The company is well posed to explore opportunities expected from multiple industry growth drivers such as (i) Structural factor- increasing young population, inclination towards heathier, high protein diet, higher demand for value added products and aggressive growth plans of quick service restaurants (QSR) (ii) economic growth pick up and demand return from HORECA segment (expected industry to grow at a CAGR of 10-11% between FY21 to FY25); (iii) Embedded value products including flavored milk, ice cream, yoghurt, cheese and whey (likely to outpace other segment and grow faster at 14-16% between FY21 and FY25); (iv) Traditional value added products and milk (expected to grow by 10-12% and 6-8% between the same time period).
10. The company is raising the fund through initial public offering for (i) Repayment and/ or pre-payment of debt, and (ii) Funding capital expenditure requirements of the Company