Heritage Foods Limited has approved the amalgamation of its wholly owned subsidiary, Heritage Novandie Foods Limited, with Heritage Foods Limited. Heritage Novandie Foods operates the Company’s yogurt production under the Livo brand.
Livo has established a presence in India’s yogurt market. Its integration with Heritage Foods’ wider dairy platform is intended to support coordinated brand development and closer alignment with the Company’s consumer and distribution capabilities.
Value-added products are becoming an increasingly important part of Heritage Foods’ portfolio. Excluding ghee and butter, VAP contribution to dairy revenue reached 35.4 per cent in Q2 FY27 and 39.6 per cent in H1 FY27, compared with 31.3 per cent and 33.7 per cent, respectively, in the corresponding periods last year.
A greater contribution from branded, differentiated products can diversify the revenue mix and reduce relative dependence on liquid milk, which is more exposed to seasonal demand patterns and commodity-linked fluctuations. Heritage Foods aims to increase VAP contribution to approximately 50 per cent over the next three years, supporting a more balanced and resilient business mix.
The proposed amalgamation is intended to integrate the businesses and financial resources more effectively, enable efficient utilisation and management of cash flows, and simplify the Group structure by eliminating an additional legal entity and reducing duplicative statutory, regulatory and administrative requirements.
The consolidation is also intended to support unified management, faster decision-making and synergies through optimisation of resources, production capabilities and business processes, alongside rationalisation of administrative and operational costs.
Commenting on the Results, Brahmani Nara, Executive Director, said: Our focus remains on building a stronger, more integrated and future-ready dairy business. The proposed amalgamation of Heritage Novandie Foods is an important step in strengthening our value-added dairy platform, while simplifying the overall structure and enabling greater alignment across the business. As we continue to scale differentiated and branded dairy products, we believe this integration will further strengthen our platform for sustainable growth and enhance operational efficiency over the long term.”
