Dodla Dairy Acquires Osam Dairy in Jharkhand, Boosting Market Access and Income for Eastern India’s Milk Producers

20 July 2025, Ranchi: In a major development for dairy farmers in eastern India, South India’s prominent dairy company, Dodla Dairy Limited, has acquired Osam Dairy—based in Ranchi, Jharkhand—for a total value of ₹271 crore. This strategic acquisition is expected to benefit thousands of milk producers across Jharkhand and neighbouring regions by providing access to a larger national market and advanced dairy infrastructure.

Strategic Expansion into Eastern India

Dodla Dairy’s Managing Director, Dodla Sunil Reddy, announced that the company has acquired 100 percent equity in Osam Dairy. He emphasised that this move will expand Dodla’s presence into eastern India, a region he described as one of the fastest-growing markets for the dairy industry. With this acquisition, Dodla aims to establish a stronger national footprint and tap into the significant potential that eastern India holds for dairy production and consumption.

Osam Dairy’s Rural Network and Daily Operations

Osam Dairy is a well-established name in Jharkhand, known for its direct engagement with over 25,000 dairy farmers. The company currently collects around 1.1 lakh litres of milk daily and operates a vast infrastructure, including 1,000 milk collection centres and 19 milk chilling facilities spread across the state. These existing assets will now be integrated into Dodla Dairy’s wider operational ecosystem, significantly enhancing its capacity in the region.

Implications for Dairy Farmers

Abhinav Shah, the promoter and former CEO of Osam Dairy, stated that the partnership with Dodla marks a new beginning for dairy farmers in Jharkhand. Over the last decade, Osam has built a strong grassroots network with farmers, and now, through Dodla’s reach and resources, that network will gain access to better opportunities. Farmers are expected to benefit from national-level market linkage, improved price realisation, modern milk processing systems, and enhanced transparency in payments.

Dodla’s National Presence and Infrastructure

Dodla Dairy, with over 30 years of experience in the sector, already has milk procurement operations in five Indian states and distributes its products across 13 states. The company operates 190 milk chilling centres and multiple processing plants across the country. The addition of Osam’s network will strengthen Dodla’s presence in eastern India and help establish a seamless milk supply chain in the region.

Positive Outlook for Rural Economy

This acquisition is expected to bring a series of structural benefits to Jharkhand’s dairy sector. The expansion of milk procurement networks, better infrastructure for storage and processing, and access to larger consumer markets will likely boost farmer income and create new employment opportunities in rural areas. With improved efficiencies and integration, dairy farmers in Jharkhand could see a transformational shift in how their milk reaches markets, ensuring better returns and long-term sustainability.

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