Heritage Foods to Merge Wholly Owned Subsidiary Heritage Novandie Foods

Dairy firm Heritage Foods Limited announced on Friday that its board has approved the amalgamation of its wholly owned subsidiary, Heritage Novandie Foods Limited, into the parent company.

Heritage Novandie Foods Limited is engaged in the manufacturing of yoghurt under the Livo brand. According to the company's statement, the proposed merger is designed to integrate the businesses and financial resources of both entities. The restructuring aims to simplify the group structure by removing an additional legal entity and minimizing duplication across statutory, regulatory, and administrative functions.

The company noted that the consolidation will facilitate better coordination between the Livo brand's distribution and development and the broader dairy business operations.

Brahmani Nara, Executive Director of Heritage Foods, stated that the amalgamation represents a key step in reinforcing the company's value-added dairy platform while streamlining the organizational structure to achieve greater business alignment.

This corporate restructuring coincides with an increasing strategic focus on value-added products (VAP) within the company's portfolio. Excluding ghee and butter, value-added products accounted for 35.4 per cent of dairy revenue during the second quarter of FY27, compared to 31.3 per cent in the corresponding period of the previous year. For the first half of the financial year, this share increased to 39.6 per cent from 33.7 per cent.

Heritage Foods has stated an objective to expand the contribution of value-added products to approximately 50 per cent of total revenue over the next three years. Company officials indicated that increasing the share of these products could help lower its reliance on liquid milk, which faces higher exposure to commodity-linked price variations and seasonal demand shifts.

"Consolidating wholly owned subsidiaries into the parent entity is a strategic measure for established enterprises looking to streamline administrative overheads and improve operational efficiency. For Heritage Foods, bringing the Livo yoghurt business directly under the parent umbrella allows for tighter integration of distribution networks as value-added segments expand. This structural simplification reduces regulatory duplication and provides better financial clarity, which is crucial as companies scale specific product categories to mitigate market volatility in traditional segments." — Dr. Shishir Gupta, Founder & CEO, StartupLanes