Dairy brand Dodla Dairy acquires Osam Dairy for Rs 271 crore

Osam Dairy, a premium dairy brand, today announced its 100% acquisition by Dodla Dairy, one of India’s foremost integrated dairy companies based in South India, for a consideration of Rs 271 crore.

“The transaction combines the strength of a high-growth regional brand with the scale and operational expertise of a national dairy leader,” the company said in a statement.

Established in 2012, Osam Dairy is focused on the procurement, processing, and sale of milk and dairy products in Bihar, Jharkhand, and other eastern dairy markets of India. The company operates a vertically integrated supply chain with two operational processing plants that ensures full control and delivery of high-quality milk products to customers.

It claims to have a procurement network with more than 25,000 plus dairy farmers, processes around 1.1 lakh litres of milk per day, and has 1000 collection centers and 19 chilling centers. 

“As a market, Eastern India is a very exciting market for the dairy industry with faster growth as compared to the national average. This market supports a large population, and milk consumption has immense headroom for growth driven by high urbanization potential and strong GDP growth. We see tremendous synergies with Osam, which, when combined with Dodla's strong operational experience, will enable us to take this to the next level,” said Dodla Sunil Reddy, Managing Director, Dodla Dairy. 

Abhinav Shah, Promoter and Outgoing CEO, Osam Dairy, said, “This acquisition marks the beginning of Osam’s next chapter. Over the past decade, we’ve built a strong foundation, and joining hands with Dodla will accelerate the company’s growth, leveraging their scale and operational excellence. We thank the InCred team for facilitating this transaction in a record time of just over four months.” 

InCred Capital acted as the exclusive financial advisor to Osam Dairy and its shareholders on the acquisition. Ashish Ambwani, Managing Director, InCred Capital said, “This transaction represents a landmark moment for Osam Dairy, which has carved a distinct niche in the competitive dairy sector of Eastern India. We’re proud to have advised on this transformative deal and are excited about the future of the business under Dodla’s ownership.” 

Dodla Dairy, which was incorporated in 1995, procures, processes, and sells milk and milk products. The company's procurement is centred in 5 states and products are available for purchase in 13 states and has 190 milk chilling centers/plants.

Its distribution and marketing operations are conducted through its 60+ sales offices, 2,900+ agents, 2,100+ milk and milk product distributors, 110 modern trades across India. The company also has international operations in Uganda and Kenya.