Heritage Foods, a Hyderabad-based dairy company, plans to expand beyond its primary market in South India and diversify its offerings with more value-added dairy products to meet the increasing demand. The company is intensifying investments in this segment, which currently constitutes 33 percent of its business.

Fresh milk, while accounting for 59 percent of revenues, has seen relatively less focus in recent years as the company prioritises growth areas like protein and probiotics. In the September quarter, Heritage Foods announced a Rs 204 crore investment in a new ice cream facility in Telangana and an additional Rs 45 crore for a flavoured milk line in Karnataka. These investments underline the company’s commitment to value-added products, which is the “fastest-growing category” for the company.  

Heritage Foods currently offers products like milk, cheese, butter, curd, and paneer. The company’s strategic shift towards value-added products, alongside geographical expansion, is expected to significantly transform its business dynamics in the coming years.

“Our core markets are the Telugu-speaking states. The second would be adjacent markets, that is, Karnataka and Tamil Nadu. Then, you have developing or emerging markets. The core markets would be the slowest growing, and emerging markets the fastest." Chief Executive Officer of Heritage Foods, Srideep Kesavan said.