Desi Farms Acquires Stakes in SNA Milk and Milk Products and DFSU Farmer Connect for Strategic Expansion

Desi Farms Acquires Stakes in SNA Milk and Milk Products and DFSU Farmer Connect for Strategic Expansion​

Desi Farms India Ltd, which was previously known as SER Industries Limited, has expanded its operational scope by acquiring significant stakes in two entities: SNA Milk and Milk Products Limited and DFSU Farmer Connect Private Limited. The acquisition is part of the Company's approved strategic plan to diversify into stable, consumption-driven sectors within the food industry.

The transaction involved a share swap arrangement rather than cash consideration. Desi Farms issued 2,11,07,790 Equity Shares as part of the Share Swap in exchange for equity and Compulsorably Convertible Preference Shares in both target companies. Through this acquisition, Desi Farms secured a 71.09% stake (on fully diluted basis) in SNA Milk and Milk Products Limited and a 42.69% stake in DFSU Farmer Connect Private Limited.

The approximate cost of the acquisition was reported at Rs. 284.96 Crores.

Business Details of Acquired Entities​

Details regarding the targets, including their operations and recent financial performance, are summarized below:

Operational Focus and Market Presence​

SNA Milk and Milk Products Limited is engaged in the manufacturing, processing, and distribution of milk-based products. Its operations involve raw milk procurement, quality testing, processing, packaging, cold chain storage, and distribution to retail and institutional customers. SNA operates across multiple cities including Mumbai, Pune, Bangalore, Ahmedabad, and Hyderabad.

DFSU Farmer Connect Private Limited focuses on end-to-end activities related to ice cream and snacks, covering product development, sourcing of raw materials, production, quality control, branding, and multi-channel distribution in domestic markets.

Financial Snapshot of SNA Milk and Milk Products Limited​

The turnover for SNA Milk and Milk Products Limited has shown consistent growth over the past three financial years:

Strategic Rationale for Acquisition​

The proposed acquisition by Desi Farms India Ltd is part of its broader strategic expansion and diversification plan. As the Company operates in the logistics business and milk and dairy products, taking on companies focused on milk product manufacturing and ice cream production is intended to facilitate entry into a stable, consumption-driven sector. The company anticipates that this move will lead to improved operational synergies, better utilization of infrastructure, improvement in consolidated revenues, and enhanced long-term financial performance, without negatively impacting its existing logistics operations.

Desi Farms has indicated that the acquisition of SNA Milk and Milk Products Limited and DFSU Farmer Connect Private Limited is currently underway, with the company aiming for 100% acquisition completion within the prescribed timeframe.

Stock Price Movement​

At the close of trade on Monday, Desi Farms India Ltd settled at ₹640.95, maintaining its value. The shares spent the day trading within an intraday range stretching from a low of ₹608.95 to a high of ₹640.95.