Dodla Dairy (DDL) is an integrated dairy company based in south India primarily deriving revenue from sale of milk & dairy based value added products (VAPs). The company is third highest in terms of milk procurement with average procurement of 1.03 million litre of raw milk per day among private dairy players with a significant presence in southern India. Apart from a presence in south India, it also has overseas operations based in Uganda, Kenya. DDL processes & sells milk and produces dairy based value added products like curd, ultra-high temperature processed milk, ghee, butter, flavoured milk & ice cream among others. It also manufactures and sells cattle feed to farmers through their procurement network.
Integrated business with procurement, distribution capabilities
Dodla has an integrated business model consisting of procurement, processing, distribution & marketing operations. Its procurement operations are spread across Andhra Pradesh, Telangana, Tamil Nadu, Karnataka and Maharashtra with average procurement of 1.03 million litre per day (MLPD) from ~1.09 lakh farmers through 6,771 village level collection centres (VLCCs) and third party suppliers. The processing operations are spread across 13 processing plants in south India with aggregate installed capacity of 1.70 MLPD. It also runs two skimmed milk powder (SMP) plants in Nellore and Vedasandur that have an aggregate installed capacity of 15,000 and 10,000 kg per day, respectively. DDL sell products under the "Dodla" and "Dodla Dairy" brand in India. Its distribution network consists of 40 sales offices, 3,285 distribution agents, 861 milk distributors and 544 milk product distributors. Its products are also available through 393 "Dodla Retail Parlours" that are operated on a franchise model in abovementioned states.
Focused engagement & long-term relationship with farmers
The company's farmer friendly policies and continuous engagement with welfare programmes have strengthened its relationships with farmers. This, in turn, has strengthened the raw milk procurement process. The company pays the farmers once every 10-15 days by transferring money directly to the bank accounts of 77% of farmers. Dodla also works with regional banks and facilitates sanctioning of loans to farmers for investment in their cattle. DDL has also diversified into an ingredient input providing business by supplying upfront cattle feed under the "Orga" brand, manufactured by its subsidiary Orgafeed Pvt Ltd.
For details, click on the link below: Link to the report