Desi Farms India Acquires Majority Stakes in SNA Milk and DFSU Farmer Connect to Diversify into Dairy Sector

Desi Farms India Acquires Majority Stakes in SNA Milk and DFSU Farmer Connect to Diversify into Dairy Sector​

Desi Farms India Ltd., which operates in the logistics business, has successfully expanded its operations by acquiring substantial stakes in two food processing entities: SNA Milk and Milk Products Limited and DFSU Farmer Connect Private Limited. The acquisition was executed through a share swap arrangement and is intended as part of the company's approved strategic expansion plan into the stable, consumption-driven dairy sector.

As of July 9, 2026, Desi Farms India completed the transaction, securing a 96.91% stake in SNA Milk and Milk Products Limited (SNA) on a fully diluted basis and acquiring 99.95% of the issued and paid-up capital of DFSU Farmer Connect Private Limited (DFSU).

The acquisition was executed via a Share Swap, with Desi Farms issuing specified shares to shareholders of both target companies in exchange for their equity stakes. The total cost of the acquisition is approximately Rs. 543.22 Crores.

Transaction Details and Consideration​

Desi Farms issued a mix of securities in the transaction: 3,18,24,590 Equity Shares, 34,54,600 3% Compulsorily Convertible Non-Cumulative Preference Shares, and 49,59,956 5% Compulsorably Convertible Debentures.

Key details of the acquisition are summarized below:

Company Profiles and Operations​

The acquired companies, along with Desi Farms India Ltd., operate in the food processing industry. SNA Milk and Milk Products Limited is engaged in the manufacturing, processing, and distribution of milk-based products, including liquid milk, dairy derivatives, and ice cream. Their operations cover raw milk procurement, quality testing, processing, packaging, cold-chain storage, and distribution to both retail and institutional clients.

DFSU Farmer Connect Private Limited focuses on end to end activities within the food sector, encompassing product development, sourcing of raw materials, production, quality control, and marketing for ice creams, healthy snacks, and allied food products domestically.

The turnover details for SNA Milk and Milk Products Limited over recent financial years are as follows:

Strategic Rationale and Impact​

Desi Farms India stated that the acquisition aligns with its corporate strategy for expansion and diversification. While the company is primarily involved in logistics and milk/dairy product businesses, acquiring companies focused on milk products and ice cream manufacturing enables a dedicated entry into this sector.

The move is expected to result in several benefits, including operational synergies, improved utilization of infrastructure, enhancement of consolidated revenues, and better long-term financial performance for the company, without negatively impacting its existing logistics operations.

Both target entities were noted as related parties, with Mr. Sunil Kumar Shahi, a Director and Shareholder belonging to the Promoter/Promoter Group of Desi Farms India Ltd., also holding positions within SNA and DFSU. The transaction was executed at 'arm's length', based on a Valuation report received from a Registered Valuer.

Stock Price Movement​

On Monday's close, the shares of Desi Farms India Ltd. settled flat at ₹640.95. The stock successfully navigated its trading day within an intraday range spanning from a low of ₹608.95 to a high of ₹640.95.