Milkfood Ltd Unlocks ₹130 Cr Value through Moradabad Asset Sale; Strengthens Balance Sheet and Accelerates Growth Plans
New Delhi [India], January 27: Milkfood Ltd., one of India’s established dairy companies with a strong legacy in value-added dairy products, has informed the stock exchanges about the sale of its Moradabad plant located at Agwanpur, Uttar Pradesh undertaking for a consideration of ₹130 crore. The company has signed an Agreement to Sell with the buyer, marking a decisive step in its ongoing business reorganisation and balance-sheet strengthening strategy.
The transaction has resulted in a net inflow of ₹116.11 crore, post taxes. The sale has generated a net profit of ₹78.04 crore on land, while the company has reported no loss on the sale of plant and machinery and a profit of ₹7.54 crore on buildings. The reversal of ₹37.37 crore from revaluation reserves is a non-cash accounting adjustment.
Focused Deleveraging to Improve Financial Health
Milkfood Ltd. plans to deploy a significant portion of the proceeds towards debt repayment. The company intends to repay loans amounting to ₹75 crore, which is expected to lead to an annual reduction in finance costs of approximately ₹9.25 crore. In addition, savings on plant overheads are estimated at ₹8.5 crore annually, resulting in a combined benefit of nearly ₹17.75 crore.
These measures are expected to translate into a net EPS accretion of approximately ₹7.25 per share (face value ₹5), underlining the immediate financial impact of the transaction.
Commenting on the development, Mr Sudhir Avasthi, Managing Director, Milkfood Ltd., said, “This transaction reflects a disciplined approach to capital allocation. By monetising a non-core asset, we are meaningfully reducing debt, improving cash flows and creating financial headroom to pursue growth opportunities. Our focus remains on building a stronger, more agile Milkfood with sustainable profitability.”
Reallocating Capital Towards Growth
With a cleaner balance sheet and lower leverage, Milkfood Ltd. is sharpening its focus on expanding high-growth and high-margin dairy categories. The company is actively planning investments in new capacities, including ice-cream manufacturing and evaluating opportunities in cheese and butter segments that continue to see strong consumer demand across urban and semi-urban markets.
Operationally, Milkfood also plans to scale up production at its Patiala plant, with the company estimating that overall turnover could reach ₹750 crore by FY 2026-27, with an expected EBITDA margin of around 7%.
A Stronger Platform for the Future
The Moradabad asset sale represents more than a one-time transaction-it marks a strategic reset. With lower debt, improved earnings visibility and a sharper focus on future-ready categories, Milkfood Ltd. believes it is well-positioned to enhance shareholder value and strengthen its competitive standing in India’s evolving dairy market.