Heritage Foods Limited has approved the amalgamation of its wholly owned subsidiary, Heritage Novandie Foods Limited, which operates the Livo yogurt business, with the parent company to strengthen its value-added dairy platform and improve operational efficiency.

The integration is expected to support Livo’s growth through better alignment with Heritage Foods’ branding, consumer reach and distribution network.

The company’s value-added products (VAP) contribution to dairy revenue, excluding ghee and butter, rose to 35.4% in Q2 FY27 and 39.6% in H1 FY27, compared with 31.3% and 33.7%, respectively, in the corresponding periods last year. Heritage Foods aims to increase the VAP contribution to approximately 50% over the next three years to diversify its revenue mix and reduce dependence on liquid milk.

The proposed amalgamation is also expected to simplify the group structure, improve cash flow management, streamline administrative and regulatory requirements, and enable better utilisation of resources and production capabilities.

Executive Director Brahmani Nara said the integration would strengthen the company’s value-added dairy platform, improve operational efficiency and support sustainable long-term growth.