Heritage Foods launches protein market with capex of ₹400 cr

good haul. Till July-end India’s exports of soyameal stood at 19.24 lt, up from 16.6 lt a year ago Gilnature
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Gilnature

Heritage Foods, the Hyderabad-based dairy products company, is looking to tap the protein opportunity. Though some of its products already contain proteins, the company hopes to launch enhanced protein products soon, according to Srideep N Kesavan, CEO of Heritage Foods Ltd.

The company has lined up a capital expenditure of ₹400 crore in the next 18-24 months. It would invest ₹200 crore on an ice-cream facility and another ₹100-150 crore on other value-added products and on automation.

“Dairy itself is inherently good news for proteins. Products like flavoured milk, curd, and paneer contain paneer, the company would like to tap this opportunity, considering the increased protein consciousness,” he said.

Heritage Foods reported a net profit of ₹38 crore (₹40.49 crore in Q4, 2024) on a revenue of ₹1,048 crore (₹950.56 crore) in the fourth quarter ended March 31, 2025. For the full financial year, it posted a net profit of ₹188 crore (₹106 crore) on a revenue of ₹4,134 crore (₹3,794 crore). 

He said the business fundamentals are looking good and strong. “Part of the business, specifically value-added products (VAP), is weather-dependent,” he said.

Regarding consumption levels, he observed that while the aggressive growth pace in quick commerce might be slightly maturing, the overall consumption across all channels is bouncing back compared to the previous quarter”.

Srideep felt that consumption was really looking positive and was very encouraging. “We see good prospects from the second and third quarter onwards. “The uncertainties, such as border tensions, are now behind us and things are looking far more confident and far more predictable,” he said.

Pricing scenario

Talking about the pricing scenario, he explained that procurement price increases for milk in South India typically occured between December and March, and for buffalo milk around June-July.

“Procurement price increases were behind us. They are currently stable. For consumer prices, they had already implemented increases in March,” he said.

He, however, indicated that there could be selective price increases product-wise or geography-wise.

Published on May 20, 2025