Milkfood Ltd Asset Sale Boosts Growth & Strengthens Finances
Milkfood Ltd has monetised its Moradabad dairy plant in Uttar Pradesh for ₹130 crore, driving a strategic balance sheet reset and laying the foundation for accelerated growth in high-margin dairy segments.
The transaction delivered a net cash inflow of ₹116.11 crore after taxes, including a significant ₹78.04 crore profit on land and gains on buildings, with no loss on plant and machinery. These proceeds will primarily be used to repay about ₹75 crore of debt, reducing annual finance costs by an estimated ₹9.25 crore and lowering plant overheads by roughly ₹8.5 crore — together boosting annual earnings efficiency.
With reduced leverage and a cleaner balance sheet, Milkfood is redirecting capital toward expansion in high-growth categories such as ice-cream, cheese and butter, while scaling up operations at its Patiala facility. The company projects overall turnover could reach approximately ₹750 crore by FY 2026-27, alongside stronger EBITDA margins and enhanced shareholder value.
According to Managing Director Sudhir Avasthi, the move underscores disciplined capital allocation — “by monetising a non-core asset, we are meaningfully reducing debt, improving cash flows and creating financial headroom to pursue growth opportunities.”
Source : Dairynews7x7 Jan 27th 2026 The Print
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