Dodla Dairy Identifies Bihar and Jharkhand for Expansion
Eastern India becomes a focus
Dodla Dairy is pursuing expansion in Bihar and Jharkhand as part of a broader effort to extend its geographical presence in India. In an interview with The CEO Magazine, chief executive Venkat Krishna Reddy Busireddy described the two states as important markets for the company’s future plans. Dodla’s disclosures for financial year 2025–26 identify the acquisition of OSAM/HR Food Processing as a strategic entry into the two markets.
The company has used acquisitions rather than relying only on newly built facilities. Existing operations provide Dodla with an established base as it develops milk collection, processing and distribution in regions where organised dairy businesses have a smaller presence. The strategy combines geographical expansion with direct procurement, integrated processing and the sale of packaged dairy products.
Procurement and processing network
Dodla began operating in 1998 and, according to the interview, now has activities in 15 Indian states. Its reported infrastructure comprises 18 processing plants and 300 milk-chilling centres. The company collects about 1.7m litres of fresh milk each day from farmers in five states through village-level collection points.
Milk is moved from rural collection locations to processing facilities through this network. Chilling centres are used to handle the product’s perishability and preserve its condition before processing. Dodla’s operating model covers procurement, processing and sales, with the company maintaining links with producers and managing several stages of the dairy supply chain.
Products and farmer payments
Dodla sells milk, curd, paneer, ghee, ice cream, buttermilk and lassi. Busireddy identified paneer as an increasingly important category. Curd represents almost 30% of sales, and nearly all curd sales currently come from southern India. The company also operates more than 1,200 retail parlours.
Dodla has replaced cash payments to milk suppliers with a digitised and automated system, Busireddy said. The system records transactions electronically and forms part of the company’s technology-enabled approach to procurement. Payment arrangements operate alongside village collection centres and the recording of milk-quality information.
Operations outside India
Dodla entered Africa in 2013 through an acquisition in Uganda and later expanded into Kenya. It currently operates two plants in Africa, with another planned. Its international business sits alongside the company’s Indian expansion, including the move into Bihar and Jharkhand.
