Dodla Dairy, based in South India, has acquired Osam Dairy, a premium dairy brand from Eastern India, for 271 crore rupees (US$31.4 million).

The acquisition grants Dodla Dairy full ownership of Osam Dairy.

This transaction represents one of the first significant takeovers in Eastern India’s dairy sector.

The region is recognized as a high-growth market for dairy consumption, driven by urbanization and economic development.

Outgoing Osam CEO Abhinav Shah said the acquisition would support growth by leveraging Dodla’s operational strengths.

InCred Capital acted as the exclusive financial advisor to Osam and its shareholders in the transaction.

Dodla Managing Director, Sunil Reddy, said the acquisition aligns with the company’s strategy to grow nationally by strengthening its presence in Eastern India.

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🔗 Source: InCred Capital

🧠 Food for thought

1️⃣ India’s dairy sector seeing accelerated consolidation amid market growth

The Osam-Dodla transaction reflects a consolidation trend in India’s dairy industry, where major players are acquiring regional brands to expand their geographic reach and product portfolios.

This aligns with previous acquisitions like Lactalis’s purchase of Prabhat Dairy for INR 1,700 crore (approximately $239 million) in 2019, executed through its subsidiary Tirumala Milk Products1.

Similarly, Hindustan Unilever acquired Adityaa Milk’s ice cream business in 2018 to strengthen its position in the frozen desserts segment2.

These deals highlight strategic positioning in a market projected to grow from INR 18,975 billion in 2024 to INR 57,001.8 billion by 2033 at a CAGR of 12.35%, driven by increasing health consciousness and evolving consumer preferences3.

The acquisition strategy enables companies to quickly gain market share, access established distribution networks, and acquire production facilities without building from scratch, which is critical in a highly competitive market with significant entry barriers.

2️⃣ Regional expansion critical for dairy companies seeking pan-India presence

Dodla’s acquisition of Osam represents a strategic geographic expansion from South to East India, following a proven approach in the industry.

This regional expansion strategy was previously demonstrated by Lactalis, which entered the Indian market by acquiring South India-based Tirumala Milk Products in 2014 and later expanded to western India with the Prabhat Dairy acquisition in 201945.

Eastern India represents a particularly attractive growth opportunity, as Dodla noted in their statement, with dairy consumption showing faster growth compared to the national average and significant potential for expansion due to urbanization.

The trend shows how dairy companies must build regional strongholds before achieving pan-India status, given the logistical challenges of dairy distribution and the importance of local supply chain networks.

Regional brands like Osam have established valuable procurement networks with local farmers that would be difficult and time-consuming for outside companies to develop organically, making acquisition a preferred growth strategy.

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