Dodla Dairy Limited IPO Details

Dodla Dairy IPO: Key Details

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Company Information

Dodla Dairy Limited, incorporated in 1995, is an integrated dairy company based in south India primarily deriving all its revenue from the sale of milk and dairy-based VAPs in the branded consumer market. Their integrated business model in India consists of procurement, processing, distribution and marketing operations.

Amongst private dairy players with a significant presence in the southern region of India, they are the third highest in terms of milk procurement per day and second highest in terms of market presence across all of India amongst private dairy players.

Operations in India are primarily across the five states of Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, and Maharashtra. Overseas operations are based in Uganda and Kenya. Indian operations are undertaken under the brands “Dodla Dairy”, “Dodla” and “KC+”. Overseas
operations are undertaken under the brands “Dodla Dairy”, “Dairy Top” and “Dodla+”.

Competitive Strengths

• Consumer focused dairy company with a diverse range of products under the “Dodla Dairy” and “Dodla” brands
• Integrated business model with well-defined procurement, processing and distribution capabilities
• Stringent quality control procedures
• Financial Growth and operational efficiencies
• Experienced Board and senior management team

Company Strategy

• Enhance their brand visibility and expand the reach of its products
• Further strengthen its procurement and processing operations
• Expand operations domestically and internationally by way of organic and inorganic growth
• Increase revenues from dairy based VAPs
• Research and Development in dairy farming and allied activities

Proceeds from Dodla Dairy IPO will be used to:

• Repayment and/ or pre-payment, in full or part, of certain borrowings availed by the Company from ICICI Bank Limited; HSBC Limited, and HDFC Bank Limited
• Funding capital expenditure requirements of the Company and
• General corporate purposes

Dodla Dairy IPO: Financials

Comparison with listed industry peers

Dodla Dairy IPO: Risks

• Operations are dependent on the supply of large amounts of raw milk, and any inability to procure adequate amounts of raw milk at competitive prices may have an adverse impact
• Any actual or alleged contamination or deterioration of products or raw materials could result in legal liability and damage to reputation
• The supply of raw milk is subject to seasonal factors and does not necessarily match the seasonal change in demand for products.
• The company’s processing plants, procurement, and distribution operations are primarily concentrated in southern India
• The company did not have adequate controls for managing its historical secretarial records and compliances as a result of which there have been certain inaccuracies and non-compliance with respect to certain provisions of the Companies Act and applicable FEMA regulation

For complete internal and external risk factors, you can refer the RHP of the company.

Dodla Dairy IPO: Registrar and Lead Managers