Heritage Foods is a dairy company that built its business by organising millions of litres of milk from hundreds of thousands of farmers and turning it into branded daily nutrition for Indian households - a model it calls “relationship farming”. Founded in 1992 in Andhra Pradesh with the principle of empowering dairy farmers, it has grown over three decades from a regional milk seller into one of India’s leading integrated dairy companies, now serving 10 million consumers daily across 13 states. The recurring approach is a vertically integrated, farmer-to-consumer supply chain that the company itself says a competitor would need over ₹500 Crores and three to five years to replicate - and it is now using that foundation to shift deliberately from commoditised liquid milk toward higher-margin branded value-added products. # Business segments Three engines at different stages - a dairy platform that is the core of the company, a small but tightly linked animal-feed business that strengthens the farmer network, and a renewable-energy division that powers the factories - all built on the same integrated supply chain. ## 1. Dairy and value-added products: the branded nutrition engine **Heritage runs a farm-to-table dairy business that procures raw milk directly from over 300,000 farmers, processes it in its own plants, and sells it as branded liquid milk and a growing portfolio of higher-margin products like curd, paneer and ice cream.** - **Milk is bought directly from farmers, not middlemen** - the company collects milk from over 300,000 dairy farmers across 9,000-plus villages in nine states, paying them two to three times a month based on fat and solids content, and has never declared a “milk holiday” (a day when procurement stops) in over 30 years. - **Freshness is built into the geography** - the federated supply chain is designed so that milk is procured within a 25-kilometre radius, chilled and processed within 100 kilometres of the market, and distributed within a 50-60-kilometre radius, which cuts the distance milk travels and keeps it fresh. - **The product mix is deliberately shifting toward value-added products** - liquid milk still made up 56% of net revenue in FY26, but value-added products (VAP) like curd, paneer, ghee and flavoured milk contributed 33% and carry roughly double the margin of liquid milk; curd alone accounts for about 69-70% of all VAP revenue. - **A premium ice-cream bet was bought, not just built** - in October 2025 the company acquired a 51% stake in the “Get-A-Way” brand, a premium, high-protein, no-added-sugar ice cream and frozen dessert business that already serves over 8,000 orders daily across 35-plus cities, and opened a new greenfield manufacturing facility near Hyderabad with capacity of about 24 million litres a year. ## 2. Animal nutrition: the farmer-loyalty engine **Heritage Nutrivet makes the cattle feed and supplements that keep the dairy farmers’ herds productive - a small business in revenue terms that reinforces the parent company’s milk supply chain.** - **Feed is sold to the same farmers who supply the milk** - the subsidiary serves nearly 0.3 million farmers across nine states, with cattle feed making up 84% of its revenue, fish feed 13% and feed supplements the remaining 3%. - **It turns farmer support into a commercial product** - the company provides technical advice, veterinary camps and a digital app called Heritage VET+ for animal management, while also selling over 30 branded feed and supplement products such as “Milk Magic” and “HeritaMin” from two factories in Andhra Pradesh with a combined capacity of 12,000 metric tonnes per month. ## 3. Renewable energy: the captive-power engine **Heritage generates its own solar and wind power to run its dairy factories, cutting both its electricity bill and its carbon footprint.** - **Power is made for the company’s own use** - the division has 14.37 MW of installed capacity (8.07 MW of solar and 6.30 MW of wind) spread across five states, and it meets roughly 37-39% of the company’s total electricity needs. - **A small surplus is sold to the grid** - the division earned ₹90.29 million from external power sales in FY24, though captive consumption is its primary purpose. # Group structure and partners **Heritage Foods is the listed parent, with three subsidiaries that extend its dairy platform into animal feed, French-style yoghurt and premium ice cream.** - Heritage Nutrivet Limited is a wholly owned subsidiary that manufactures and distributes livestock feed and supplements from two plants in Andhra Pradesh. - Heritage Novandie Foods Limited, originally a 50:50 joint venture with France’s Andros Group, became a 94.40%-owned subsidiary in June 2025; it makes flavoured yoghurt products under the “Livo” brand for Heritage from a plant in Palghar, Maharashtra. - Peanutbutter and Jelly Private Limited, owner of the “Get-A-Way” premium ice-cream brand, became a 51%-owned subsidiary in January 2026, with an option for Heritage to buy a further 20% stake after March 2026. - The company also holds a 43.33% stake in Skil Raigam Power (India) Limited, a dormant associate that had planned to set up a hydro power plant in Arunachal Pradesh.