Heritage Foods to Expand Ice Cream Production with New Facility

Heritage Foods Limited, a leading dairy products manufacturer based in Hyderabad, announced plans on Wednesday to establish a state-of-the-art ice cream manufacturing facility in Shamirpet, Telangana. The new facility, estimated to require a capital investment of ₹204 crore, aims to address the rising demand for ice cream in the region and enhance production capacity.

The project, which is scheduled for completion by November 2025, will be financed through a combination of debt and internal accruals.

Heritage Foods, a diversified company operating in the dairy, renewable energy, and cattle feed sectors, has a strong focus on its dairy division. This division encompasses a wide range of products, including milk, milk products, ice cream, and frozen desserts. The new ice cream facility aligns with Heritage Foods’ strategy to expand its market presence and better serve consumers in the region.

Financial Performance

The company saw growth of 11.8% in Q1 FY25, and for the first time, its revenue surpassed ₹10,000 Million. Value-Added Products had strong growth in Q1, rising by 19.9% to reach revenues of ₹4,228 Million. The contribution of VAP was 41.5%, up from 38.6% in Q1 of FY24. (Revenue from Value-Added Products, such as Ghee and Butter consumer packets) With Ghee and butter excluded, VAP revenue came to ₹382.3 crore, accounting for 37.5% of revenue in Q1 FY25, up from 35.3% in the same LY period and expanding at an 18.7% annual rate. The first quarter had a 4.26% YoY increase in milk sales volumes to 1.13 MLPD, while the average milk selling price was ₹54.81/Lt, an increase of +0.40%. 

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