Akshata Sharma
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In the early 1990s, Chandrababu Naidu who was the president of the Telugu Desam Party observed local dairy farmers in Andhra Pradesh struggling with the challenges posed by the dairy cooperative system.
Issues such as timely payments, transportation logistics, and the marketability of milk products were prevalent in the region's dairy sector.
To address these problems, the politician founded Heritage Foods in 1992, combining the cooperative vision with corporate efficiency.
With an initial investment of Rs 80 lakh, Naidu enlisted his wife, Nara Bhuvaneshwari, and experienced dairy executives to advance the initiative.
Following Chandrababu Naidu's election victory on June 4, 2024, Heritage Foods' stock surged 36% in three days.
The company's shares hit a 20% upper circuit at Rs 546.95 on the BSE, following the significant electoral win by its founder and Telugu Desam Party chief, Chandrababu Naidu.
The stock of Heritage Foods has risen by 35.79% over three sessions, from its recent low of Rs 402.80 recorded on May 31, 2024. The rally occurred as it became evident that Naidu would become the Chief Minister of Andhra Pradesh after the assembly elections.
Heritage Foods is one of the largest private sector dairy enterprises in Southern India, with a market presence in Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Maharashtra, Odisha, NCR Delhi, Haryana, Rajasthan, Uttarakhand, and Uttar Pradesh.
In Q4 FY24, the company's consolidated net profit soared by 125.88% to Rs 40.5 crore, compared to Rs 17.93 crore in Q4 FY23.
Additionally, revenue from operations increased by 16.26% year-on-year to Rs 950.57 crore in Q4 FY24, up from Rs 817.6 crore in the corresponding quarter of the previous year.
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