Heritage Foods has approved a proposal to merge its wholly owned subsidiary, Heritage Novandie Foods, which operates the Livo yogurt business, with the parent company. The move is intended to simplify the corporate structure, improve operational efficiency and strengthen its value-added dairy portfolio.
Announced on October 23, 2026, the proposed amalgamation will bring Livo’s operations under Heritage Foods’ broader dairy business, enabling closer coordination across brand development, distribution and consumer-facing operations.
Value-added dairy drives growth
The proposed merger comes amid an increasing contribution from value-added products (VAP) to Heritage Foods’ dairy revenue. Excluding ghee and butter, these products accounted for 35.4% of dairy revenue in Q2 FY27 and 39.6% in the first half of FY27. The corresponding contributions in the year-ago periods stood at 31.3% and 33.7%, respectively.
Heritage Foods aims to raise the share of value-added dairy products to around 50% over the next three years.
The company expects a stronger focus on branded and differentiated products to diversify its revenue base and reduce its relative reliance on liquid milk, which is more susceptible to seasonal demand variations and commodity price fluctuations.
Consolidation to streamline operations
The amalgamation is also expected to improve the deployment of financial resources and cash flows while eliminating a separate legal entity. The consolidation could reduce overlapping statutory, regulatory and administrative requirements, helping simplify business management.
Heritage Foods said the integration would enable unified management, quicker decision-making and better utilisation of resources, manufacturing capabilities and business processes. The company also expects operational and administrative cost efficiencies from the move.
Commenting on the development, Brahmani Nara, executive director at Heritage Foods, said the proposed merger marks a step towards strengthening the company’s value-added dairy business while simplifying its organisational structure.
“As we continue to scale differentiated and branded dairy products, we believe this integration will further strengthen our platform for sustainable growth and enhance operational efficiency over the long term,” she said.
