Milkfood to sell Moradabad plant land to Bareilly Dairies for Rs 130 crore

New Delhi, Jan 17 (PTI) Milkfood Ltd will sell land at its Moradabad plant in Uttar Pradesh to Bareilly Dairies Ltd for Rs 130 crore, the company said on Saturday, as it seeks to reduce debt and restructure operations.

The transaction, executed on January 16, is expected to close by March 31, subject to agreed terms and conditions, Milkfood said in a statement.

The asset forms part of Milkfood's Moradabad manufacturing facility at Agwanpur on the Moradabad-Kanth Road, which has a milk processing capacity of about 500 metric tonnes per day.

Milkfood said proceeds will primarily reduce outstanding debt and meet operational requirements. About Rs 80 crore will go towards repaying existing borrowings, while around Rs 17 crore will cover plant overheads and operational expenses.

"This transaction forms part of a comprehensive reorganisation and restructuring plan aimed at consolidating operations and repaying lender dues," Managing Director Sudhir Avasthi said.

The company is evaluating expansion into higher-margin dairy segments, including plans for an ice cream manufacturing facility in the Delhi-National Capital Region and potential growth in the cheese and butter segments, it said.

Bareilly Dairies, incorporated under the Companies Act, 2013, is not related to Milkfood's promoter, promoter group or group companies, the statement added. PTI LUX TRB