March 19, 2022, witnessed the acquisition of Karnataka-based Sri Krishna Milks Private Limited by Dodla Dairy Limited. Incorporated in March 1989, Sri Krishna Milks was the first private limited company in Karnataka.
Dodla Dairy Limited executed the business transfer agreement for business acquisition on a “Going Concern” basis and through a “Slump Sale” basis of consideration amounting to Rs. 50 Lakhs. Dodla Dairy Limited, a company incorporated in Hyderabad, Telangana, in 1995, made this stock exchange announcement for diversification of its business and is ranked as third amongst the third largest among private players in terms of milk procurement per day.
Sri Krishna Milks’s business included procuring, manufacturing, distributing and selling milk and other dairy products whose turnover amounted to Rs. 67.27 crore in FY 2020-21, down from Rs 76.27 crore in 2019-20 and Rs 90.20 crore in 2018-19. The main objective of the acquisition was to expand the company’s business overall so that they do not fall in the purview of related party transactions. The business acquisition completion is expected to take two months from the effective date of acquisition.
