Dodla Dairy Ltd

Dodla Dairy

About the Company:

Dodla Dairy is an integrated dairy company based in south India deriving all of its revenue from the sale of milk and dairy based VAPs in the branded consumer market.

Amongst private dairy players with a significant presence in the southern region, Dodla Dairy is the third highest in terms of milk procurement with an average procurement of 1.00 million litres of raw milk per day as of May 31, 2018 (“MLPD”) and second highest in terms of market presence amongst private dairies.

Company’s operations in India are primarily across the four South Indian states of Andhra Pradesh, Telangana, Karnataka and Tamil Nadu. Company’s International operations are based in Uganda and Kenya.

Company’s Indian and international operations are undertaken under their brands “Dodla Dairy” and “Dairy Top” respectively.

Company process and retails milk and produce dairy based value added products (“VAPs”) such as curd, ultra-high temperature processing (“UHT”) milk, ghee, butter, flavoured milk and ice cream amongst others.

Company’s revenues from sale of milk and dairy based VAPs constituted 68.41% and 31.59% of their consolidated revenues in Fiscal 2018 respectively.

 

Procurement of Milk.

Company’s procurement operations are spread across the states of Andhra Pradesh, Telangana, Tamil Nadu and Karnataka and consist of an average procurement of 1.00 million MLPD as of May 31, 2018 from approximately 220,789 farmers through 3,212 procurement agents including third party suppliers across 7,598 villages and through our own Dodla Dairy Collection Centres (“DDCCs”) as of May 31, 2018.

Company’s total average raw milk procurement increased from 0.62 MLPD in Fiscal 2014 to 1.02 MLPD in Fiscal 2018.

 

Processing of Milk.

Company’s processing operations consist of processing of the raw milk collected into packaged milk and manufacturing of other dairy based VAPs by 11 processing plants with an aggregate installed capacity of 1.29 MLPD.

The aggregate installed capacity has increased from 0.57 MLPD in Fiscal 2014 to 1.29 MLPD in Fiscal 2018.

Further, they intend to commence operations at their 12th plant near Rajahmundry, Andhra Pradesh in 2019.

Company’s distribution and marketing operations consist of distribution of their milk and dairy based VAPs through 14 sales offices, 3,329 distribution agents, 379 milk distributors and 466 milk product distributors across nine states in India.

Additionally, the milk and dairy based VAPs are also available through 217 “Dodla Retail Parlors” which commenced operations in 2016 and are spread across the states of Andhra Pradesh, Telangana, Tamil Nadu and Karnataka.

 

Company’s African Operations.

Dodla Dairy’s international operations are based in Uganda and Kenya.

Packaged milk and dairy based VAPs for retail are produced from our processing plant in Uganda and are distributed in Uganda and Kenya.

Company’s distribution operations in Uganda are conducted through their African Subsidiary Lakeside Dairy Ltd. and include distribution of milk and dairy based VAPs through 21 distributors and four distribution agents.

The distribution operations in Kenya are conducted through their African Subsidiary Dodla Dairy Kenya Limited and include distribution of milk and dairy based VAPs through 107 distribution agents and 34 distributors.

 

Key Financial Comparison of Dairy Companies in South India.

financial comparison

 

Management Team:

  1. Mr. Dodla Sesha Reddy (Designation: Chairman and Non- Executive Director)
  2. Mr. Dodla Sunil Reddy (Designation: Managing Director)
  3. Mr. Madhusudhana Reddy Ambavaram (Designation: Whole-time Director)

 

Positives for the Company:

Consumer focused Dairy company with a diverse range of products under the “Dodla Dairy” brand.

Dodla Dairy is one of the leading brands in the dairy products industry in south India with strong consumer recognition, particularly in the States of Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.

Company is the third highest in terms of milk procurement with an average procurement of 1.00 million litres of raw milk per day as of May 31, 2018 (“MLPD”) and second highest in terms of market presence amongst private dairies.

 

Integrated Business model with well-defined Procurement, Processing and Distribution capabilities.

Company’s procurement operations are spread across the states of Andhra Pradesh, Telangana, Tamil Nadu and Karnataka and consist of procurement of on an average approximately 1.00 MLPD of raw milk from approximately 220,789 farmers across 7,598 villages through 3,717 DDCCs, 3,212 procurement agents and 78 chilling centres

Company’s processing operations are spread across 11 processing plants (nine of which are owned and two are leased) located in the states of Andhra Pradesh, Telangana, Karnataka and Tamil Nadu in India with an aggregate installed capacity of 1.29 million liters per day.

Company distributes its milk and dairy based VAPs through 14 sales offices, 3,329 distribution agents, 379 milk distributors and 466 milk product distributors.

 

Financials of the Company: (Consolidated)

(in Crores) FY 14 FY 15 FY 16 FY 17 FY 18
Revenue 848.84 1033.35 1206.9 1447.37 1597.01
Net Profit 25.3 11.32 52.83 46.53 54.33

 

 

Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
Dodla Dairy Ltd 10 9.76 TBA 15.99% 1037.49
Hatsun Agro Products Ltd 1 6.0 111.2 24.9% 24.0
Heritage Foods Ltd 5 13.5 45.0 9.8% 138.0
Parag Milk Foods Ltd 10 10.4 30.7 12.1% 85.2
Prabhat Dairy Ltd 10 4.9 31.7 6.5% 74.8

 

IPO Details:

Details Info
Issue Opens on Will be Updated
Issue Closes on:. Will be Updated
Issue Price Will be Updated
Face Value Rs.10
Minimum Lot Will be Updated
Minimum Investment Will be Updated
Issue Constitutes Will be Updated
Issue Size Will be Updated
Market Cap Will be Updated
Listing at NSE & BSE
Equity Shares Offered Will be Updated
Equity Shares Prior to the Issue 5,56,71,991
Equity Shares after the issue Will be Updated

 

Important Dates:

Finalization of Basis of Allotment Will be Updated
Initiation of Refunds Will be Updated
Credit of Equity Shares: Will be Updated
Listing Date: Will be Updated

 

Subscription Details: (Will be Updated)

(Subscription-Category-Wise (no. of times) Till time : 00:00) Shares Offered Day-1 Day-2 Day-3
QIB
NII
Retail
Employee
TOTAL

 

IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
9.76 TBA 15.99% 1037.49

 

 

Check IPO Allotment Status:

Karvy Website (Click on the below Link)

http://kosmic.karvy.com:81/ipotrack/

 

Find the List of Upcoming IPOs in 2019:

Upcoming IPOs in 2019 (Click on the below Link)

https://UpcomingIPOs-in-India-2019

 

Company Contact Info:
Dodla Dairy Limited
8-2-293/82/A/270-Q, Road No 10-C
Jubilee Hills, Hyderabad, 500 033
Telangana, India
Tel: +91 40 4546 7777
Fax: +91 40 4546 7788
E-mail: mail@dodladairy.com
Website: www.dodladairy.com

 

IPO Registrar Info:
Karvy Computershare Private Limited
Karvy Selenium Tower-B”
Plot No. 31-32, Gachibowli, Financial District
Nanakramguda, Hyderabad, 500 032
Tel: +91 40 6716 2222
Fax: +91 40 6716 1551
E-mail: dodladiary.ipo@karvy.com
Website: www.karisma.karvy.com