Chandrababu Naidu’s triumph boosts Heritage Foods stock
Kingmaker Chandrababu Naidu-backed company Heritage Foods is on a roll in the share market. Here's how he started the dairy manufacturing company!
Trending as a kingmaker in politics, Andhra Pradesh Minister Chandrababu Naidu is experienced in entrepreneurship too. He received the title of "South Asian of the Year" for his remarkable work as a CM.
Back then and today, Chandrababu still held a strong position in the political landscape. Following a landslide victory in the General elections, the share prices of companies associated with the Telugu Desam Party, such as Heritage Foods, KCP, and Amara Raja Energy, have surged.
What caught everyone's eye is the Heritage Group, a company founded by Chandrababu. Let's explore the entrepreneurial journey of this TDP leader after winning the 2024 Lok Sabha elections!
The origin story of Heritage Foods
N Chandrababu Naidu
In the early 1990s, Naidu observed that local dairy farmers in Andhra Pradesh were facing hardships with the dairy cooperative system that had been widely adopted throughout the country. Some key challenges faced were transportation, farmer payments, and the marketability of milk products were becoming prevalent in the region's dairy sector.
To tackle this issue, Chandrababu Naidu founded Heritage Foods in 1992. The company has 2 main divisions including dairy products production and renewable energy. Currently, the firm's milk and dairy products have a market presence in prominent states like Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, Kerala, Odisha, NCR Delhi, Maharastra, Rajasthan, Haryana, Uttar Pradesh and Uttarakhand.
According to their website, the annual revenue of Heritage Foods stood at Rs 3208.7 crore in the financial year 2022-23. Naidu's wife, Nara Bhuvaneshwari, and son, Nara Lokesh, are the promoters of the dairy manufacturing company. As of the end of the March quarter, Bhuvaneswari Nara held a 24.37% stake, while Nara Lokesh held a 10.82% stake in the company.
In 2019, the daughter-in-law of Chandrababu Nara Brahmani spoke to YourStory to share the business model, vision and early days of the company. You can catch up with this interview at the link below!
TDP-related shares rise after Naidu's election victory
After TDP leader Naidu won 16 out of 25 seats in the elections, a bunch of share prices jumped! KCP and Heritage Food recorded a jump of 18% and 10% in share prices respectively. On the Bombay Stock Exchange, KCP Ltd's share price had opened at an intraday low of ₹216.05 apiece and reached an intraday high of Rs 238.70 apiece.
Subsequently, Heritage Food's share price opened at ₹592.95 apiece, it hit an intraday low of ₹575.50 and a high of ₹601.60 apiece. The firm has recorded a sharp rise in share price gaining 80% in the last three months. Another stock that benefited by 18.7% from the positive sentiment was Amara Raja Energy and Mobility, where former TDP MP Jay Dev Galla is the Managing Director.
As TDP is set to form a coalition government with the Bhartiya Janta Party (BJP), high-trading activities are surrounding firms backed by Chandrababu Naidu as he is going to become the CM of Andhra Pradesh again.
The bottom line
Nara Chandrababu Naidu is a well-known face in politics but he is also known for his contributions to the IT sector and business world. With the success of the Lok Sabha elections, many TDP-related shares have surged in prices.
