Dodla Dairy Ltd., the Hyderabad-headquartered dairy powerhouse, has signed a definitive agreement to acquire 100% stake in Jharkhand-based Osam Dairy Pvt. Ltd. for ₹271 crore in an all-cash deal. The move marks Dodla’s aggressive push beyond South India, entering high-growth markets across the eastern states.
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A Strategic Leap into Eastern India
Dodla Dairy Chairman and Managing Director Sunil Reddy described the acquisition as “a significant milestone in Dodla’s journey towards becoming a pan-India dairy company.” He emphasised that Eastern India is an “exciting market” with faster growth than the national average, driven by urbanisation and rising GDP rates.
Osam Dairy, launched in 2012 by founders Abhinav Shah and Harsh Thakkar, runs a vertically integrated dairy business across Bihar, Jharkhand, and adjoining states.
The company processes about 110,000 litres of milk daily; sources milk directly from 25,000 farmers; and operates two processing plants, 1,000 collection centres, and 19 chilling centres.
In fiscal year 2024–25, Osam Dairy clocked revenues of ₹283 crore, on an enterprise value of ₹247 crore and net cash of ₹23.8 crore.
Deal Dynamics & Financial Terms
The acquisition implies a net cash payout of ₹271 crore—the structure comprises the purchase of equity and debt as part of the enterprise value agreement.
The process spanned just over four months from the signing of the share purchase agreement, reflecting smooth negotiations.
Osam’s outgoing promoters and private-equity investors are exiting, marking the end of a significant chapter in the company’s lifecycle.
Why Dodla Is Bullish
Sunil Reddy sees strong synergies between Dodla’s scale and Osam’s regional reach. He said, “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”.
Dodla’s existing infrastructure spans five Indian states, 190 chilling plants, more than 60 sales offices, 2,900+ agents, and 2,100 local distributors. The company also operates over 839 retail parlours across India and maintains an international presence in Uganda and Kenya.
Through the acquisition, Dodla gains immediate access to a large raw material base—a network of over 25,000 Eastern farmers—and bolsters its procurement capability to strengthen supply-side resilience.
A Win-Win for Osam
Abhinav Shah, co-promoter and outgoing CEO of Osam Dairy, praised the deal as the beginning of a new phase. “Over the past decade, we’ve built a strong foundation, and joining hands with Dodla will accelerate the company’s growth,” he said.
He added that Dodla’s operational expertise and national distribution scale will help Osam drive expansion faster. The transition follows a sharp exit process of the promoters and PE backers, marking a well-timed handover.
Read: Most Profitable Dairy Franchises in India
Role of Deal Advisors
InCred Capital acted as the exclusive financial advisor to Osam Dairy and its shareholders. InCred’s Managing Director Ashish Ambwani celebrated the transaction as a milestone in Eastern India’s dairy sector, where big acquisitions have been “rare”.
Broader Industry Trend
Experts see Dodla’s acquisition as proof of investor confidence in Eastern India’s dairy sector—a region previously underserved by national players.
DealStreetAsia echoed the sentiment, calling the move “an all-cash deal worth approximately $31.5 million” and underlining the strategic intent to fortify Dodla’s footprint in the East.
Analysts believe this acquisition could spark a series of consolidations in the Indian dairy space, especially as smaller regional brands look to scale or exit.
What Lies Ahead
Dodla plans to integrate Osam’s facilities into its operational network swiftly. The company expects that combined procurement operations will serve as a backbone to accelerate Osam’s growth in Eastern markets.
Consumers in Bihar, Jharkhand, and West Bengal could soon see increased availability of Dodla-branded milk, curd, paneer, and value-added products bolstered by Osam’s regional expertise.
Fast Facts: Dodla Dairy & Osam Dairy
| Feature | Dodla Dairy | Osam Dairy |
| Founded | 1995 | 2012 |
| Presence | 5 states, 13 retail, 190 plants | Eastern India (Bihar, Jharkhand, etc.) |
| Procurement Network | Large-scale national network | 25,000 farmers, 1.1 lakh L/day |
| Collection/ Chilling Centres | 60+ sales offices | 1,000 collection, 19 chilling centres |
| Revenue/FY25 | Consolidated national revenue | ₹283 crore |
Conclusion
The ₹271 crore acquisition of Osam Dairy marks a calculated, well-timed expansion for Dodla Dairy, anchored in operational robustness and geographic diversification. With Osam’s strong supply chain and Dodla’s national engine, the partnership is well-positioned to drive rapid growth in Eastern India.
For Dodla, this deal fulfils a strategic ambition to evolve from a regional leader into a pan-India dairy powerhouse. For Osam, it marks a new chapter of accelerated growth under a larger, more resource-rich parent.
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