Dodla Dairy Limited: history, ownership, mission, how it works & makes money

A Brief History of Dodla Dairy Limited

Dodla Dairy Limited, established in 1998, is a prominent dairy company based in India, primarily operating in southern states such as Andhra Pradesh, Telangana, and Karnataka. The company has established itself as a significant player in the dairy sector, focusing on milk production and processing along with a range of dairy products.

In 2021, Dodla Dairy went public with an Initial Public Offering (IPO) that raised around ₹520 crore, further enhancing its capital base for expansion and operational efficiency. The IPO was subscribed over 45 times, indicating strong investor interest.

The company reported a revenue of approximately ₹1,100 crore for the financial year ending March 2022, showcasing a growth of 12% year-over-year. Dodla Dairy’s net profit stood at ₹38 crore, reflecting its profitability despite challenging market conditions.

Dodla Dairy has a well-established distribution network, reaching over 1.5 million households. Their product portfolio includes standardized milk, flavored milk, curd, ghee, paneer, and butter, catering to diverse consumer needs.

In terms of operations, Dodla Dairy has expanded its processing capacity with several state-of-the-art plants. As of October 2022, the company operates 12 processing plants across India, with a total capacity of over 3 million liters per day.

Dodla Dairy has also been active in strategic acquisitions to bolster its market presence. In late 2021, the company acquired a regional dairy business that contributed an additional ₹150 crore to its annual revenue.

Through its commitment to quality and sustainability, the company sources milk from over 1,500 dairy farmers. In the fiscal year 2021-22, Dodla Dairy paid out approximately ₹400 crore to its farmer partners, strengthening its supply chain.

The stock of Dodla Dairy was listed on the National Stock Exchange (NSE) under the ticker symbol “DODLA.” As of October 2023, the stock price averages around ₹500 per share, reflecting a steady increase since the IPO.

Overall, Dodla Dairy’s strategic initiatives, robust financial performance, and focus on innovation position the company favorably for future growth in the competitive dairy market. The emphasis on technology and community engagement further enhances its brand value and consumer loyalty.

A Who Owns Dodla Dairy Limited

Dodla Dairy Limited, a prominent player in the Indian dairy sector, is publicly traded on the National Stock Exchange of India (NSE) under the ticker symbol "DODLA." As of the latest available data, the ownership of Dodla Dairy Limited is characterized by a mix of institutional and retail investors, along with significant stakes held by company promoters.

According to the most recent shareholding pattern disclosed for the quarter ended September 2023, the following ownership distribution is noted:

The promoter group plays a critical role in the company, holding over half of the total shareholding. Additionally, according to the company's 2023 Annual Report, the major promoters include:

• G. Ranga Reddy
• G. Krishnareddy
• G. Bhargav Reddy

As of the latest annual disclosures, Dodla Dairy reported revenues of approximately ₹1,400 crore for the fiscal year 2022-2023, reflecting a year-on-year growth of about 15%. The company aims to expand its operational footprint across India, enhancing its market share in the dairy segment with a focus on milk and milk products.

In terms of stock performance, as of September 2023, the share price of Dodla Dairy was around ₹550, with a market capitalization of roughly ₹1,700 crore. The company's stock has seen a return of approximately 20% year-to-date, showcasing investor confidence amidst a competitive market landscape.

Moreover, the company has been focusing on strategic partnerships, technological advancements, and sustainability practices to improve operational efficiencies. This positions Dodla Dairy as a resilient entity within the rapidly evolving dairy industry in India.

Dodla Dairy Limited Mission Statement

Dodla Dairy Limited, a prominent player in the dairy sector, aims to provide quality dairy products and enhance the livelihood of dairy farmers. The company's mission statement reflects its commitment to excellence, sustainability, and community empowerment.

The mission of Dodla Dairy encompasses:

• Delivering premium quality dairy products to consumers.
• Ensuring sustainable practices that benefit both the environment and farming communities.
• Fostering a robust supply chain that supports local dairy farmers and their families.
• Expanding market reach while maintaining a commitment to quality and customer satisfaction.

As of the latest financial year, Dodla Dairy reported a strong performance characterized by significant revenue growth. For the fiscal year 2022-2023, the company achieved:

With a presence in over 10 states across India, Dodla Dairy has rapidly expanded, focusing on efficiency and quality throughout its operations. The company's robust supply chain leverages technology to ensure dairy farmers receive fair compensation while enhancing their productivity.

In alignment with its mission, Dodla Dairy is actively investing in community initiatives and programs aimed at improving farmer welfare. The company has set aside around 5% of its annual revenue for CSR activities, specifically targeting education and health in local communities.

Furthermore, Dodla's commitment to sustainability is reflected in its recent initiatives to reduce carbon footprints, with targets to achieve a 30% reduction by 2025 in line with global standards.

The company continuously innovates its product range, with recent launches including fortified milk and value-added dairy products. In FY 2022-2023, the new product lines contributed to approximately 15% of total sales, indicating a successful expansion strategy aligned with consumer health trends.

Overall, Dodla Dairy Limited’s mission statement is a testament to its strategic focus on quality, sustainability, and community engagement, driving both financial performance and social impact in the regions it serves.

How Dodla Dairy Limited Works

Dodla Dairy Limited is an integrated dairy company operating primarily in southern India. The company engages in the procurement, processing, and distribution of a variety of dairy products. As of the financial year 2022-2023, Dodla Dairy reported a total revenue of ₹1,288 crores, marking a significant growth compared to ₹1,157 crores in the previous financial year. This growth was driven by increased sales volume and a diversified product portfolio.

The company operates through a well-established milk procurement network, which includes over 1,50,000 farmers. Dodla Dairy ensures a steady supply of raw milk, which is processed at its facilities across the region. It has a daily milk processing capacity that exceeds 1 million liters.

Dodla Dairy’s product portfolio encompasses a range of dairy products, including milk, curd, buttermilk, paneer, and ghee. The company markets these products under various brands, including Dodla and Dodla Ghee. The company's strategic focus on expanding its product offerings contributed to a strong performance in the value-added product segment, with value-added products accounting for approximately 35% of total revenue.

To analyze Dodla Dairy’s financial performance, the following table summarizes key financial metrics for the fiscal year 2022-2023:

Dodla Dairy has also been expanding its geographic reach. The company operates more than 1,000 retail outlets and has a distribution network that spans across several states in southern India, including Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu. This extensive reach allows Dodla Dairy to effectively tap into various markets and cater to a large customer base.

Furthermore, the company's commitment to sustainability and quality assurance is reflected in its stringent quality control practices, which include regular testing of milk and dairy products at multiple stages of production. This focus on quality has helped Dodla Dairy maintain a robust brand reputation in a competitive market.

In terms of stock performance, Dodla Dairy Limited is listed on the National Stock Exchange of India (NSE) as well as on the Bombay Stock Exchange (BSE). As of October 2023, Dodla Dairy’s stock price is approximately ₹586, with a market capitalization around ₹1,400 crores.

The company’s future growth strategy involves leveraging technology for enhancing operational efficiency, expanding its product line, and increasing its footprint in new territories. Dodla Dairy is also focusing on improving its supply chain logistics to further decrease costs and increase profitability.

With a continued emphasis on product innovation and customer satisfaction, Dodla Dairy Limited is well-positioned to strengthen its market presence and drive sustained growth in the coming years.

How Dodla Dairy Limited Makes Money

Dodla Dairy Limited operates in the dairy industry, primarily focusing on the production and distribution of milk and dairy products. As of the fiscal year 2023, the company reported a total revenue of approximately ₹1,609 crore, reflecting a year-on-year growth of around 14%.

The company's revenue streams can be categorized into several key segments:

• Liquid Milk
• Dairy Products
• Value-Added Products
• Packed Milk

In FY2023, the breakdown of revenue from different segments was as follows:

Dodla Dairy's primary product is liquid milk, which constitutes a significant portion of its revenue. The company sources milk from over 1.2 million farmers, ensuring a robust supply chain. In FY2023, the average selling price for milk was approximately ₹45 per liter.

The dairy products segment includes curd, butter, and cheese, contributing to approximately 18.6% of total revenue. The demand for these products has seen a steady increase, particularly driven by urbanization and rising consumer awareness regarding health and nutrition.

Value-added products, such as flavored milk and yogurt, are becoming significant growth areas. They accounted for about 5.6% of the revenue in FY2023, reflecting a growing trend towards healthier options among consumers.

Dodla Dairy has also leveraged technology in its operations. With automated processing plants, the company reports an operational efficiency that has improved its profit margins. In FY2023, the gross profit margin stood at approximately 25%, up from 23% in the previous year.

Distribution plays a crucial role in Dodla Dairy's revenue generation. The company has a widespread distribution network that includes over 1,500 distributors and retail outlets across southern India. This extensive reach ensures that its products are available in both urban and rural markets.

In terms of profitability, Dodla Dairy reported a net profit of approximately ₹72 crore in FY2023, with an EBITDA of ₹150 crore. The company's debt-to-equity ratio is a healthy 0.5, indicating a balanced capital structure and lower financial risk.

Furthermore, Dodla Dairy has been investing in expanding its processing capacity. The company plans to enhance production capabilities by approximately 20% over the next two years to meet increasing demand.

In conclusion, Dodla Dairy Limited’s financial success stems from its diversified product offerings, efficient supply chain management, and strategic distribution network, enabling it to capitalize on the growing dairy market in India.