Heritage Foods: The Family Business Of TDP Leader Chandrababu Naidu Making Headlines (image-X/gemsofbabus_)
Shares of Heritage Foods dropped another five percent on Wednesday to Rs 627.30 per share. The downward spiral has been ongoing for the past three days as investors engaged in profit booking. The company, headed by Telugu Desam Party (TDP) leader Chandrababu Naidu, recently made headlines when the share price rose from Rs 343 to Rs 727.35 per share on the National Stock Exchange (NSE), a 70 percent rise between June 4 and June 10.
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What Is Heritage Foods?
Founded in 1992 by Naidu, who was still an MLA then, with three business divisions consisting of dairy, agriculture, and retail under its flagship company, Heritage Foods. Although Naidu himself does not directly own a stake in the firm, his family members, including wife Bhuvaneswari Nara, son Nara Lokesh, daughter-in-law Nara Brahmani, and grandson Devaansh Nara, collectively hold a 41.3 percent stake in Heritage Foods as of Q4 FY24, as per the data by Trendlyne.
Heritage Foods is considered one of India’s leading branded dairy product firms through its subsidiary, Heritage Nutrivet (HNL). The firm’s milk and milk products, including curd, ghee, flavoured milk, etc., are consumed by over 1.5 million households in 11 states in India, according to Financial Express. The firm has also recorded growth of 17% and 83% in revenues and profit in FY23–24.
The Reason Behind The Dramatic Rise Of Heritage Foods
As a standout in the FMCG sector, the surge has been attributed to the monsoon forecast and the anticipated increase in consumption of FMCG products. But more importantly, soon after the exit poll predictions were out, projecting the comeback of Naidu as the state’s chief minister, the stock’s bull run began.
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The sharp tick in share price has been closely associated with the TDP’s landslide victory with a majority in the 2024 Andhra Pradesh assembly elections. The National Democratic Alliance (NDA) alliance, comprising the TDP, Pawan Kalyan’s JanaSena Party, and the BJP, won a total of 164 seats out of the 175 seats in the state assembly.
