N Chandrababu Naidu's Heritage Foods partners with banks to provide loans to farmers
The dairy brand said it signed a Memorandum of Understanding with State Bank of India, Bank of Baroda, and Indian Bank to provide dairy loans to farmers through the lender's branches across the country.
N Chandrababu Naidu
Hyderabad-based dairy player Heritage Foods on Wednesday said it had signed a Memorandum of Understanding with State Bank of India, Bank of Baroda, and Indian Bank to provide dairy loans to farmers through the lender's branches across the country.
Started by former Andhra Pradesh Chief Minister N Chandrababu Naidu, the dairy company said in a press release it ensures procurement of entire milk produced under this financing facility.
Brahmani Nara, Executive Director, Heritage Foods, said:
"We ensure procurement of entire milk produced under this financing facility, which ensures regular income for farmers and gives good comfort for the banks to fund farmers. This is a win-win situation for all. In the process the income of farmers will be doubled and they can also increase the cattle strength in future once they establish good repayment track record with banks."
Recently, Heritage Foods had signed an MoU with SBI Maharashtra circle at Baramati to facilitate cattle loans to milk producers.
The company has also signed an MoU with Indian Bank at Chennai.
Heritage Foods had earlier tied-up with State Bank of Hyderabad in 2011 and Bank of Baroda in 2016 to provide dairy loans to the farmers.
Heritage Foods is in the business of procurement, processing, and sale of milk and milk products. The objective of this collaboration is to help farmers by providing investment credit in agriculture, it said.
Started in 1992 with an initial investment of Rs 80 lakh, Naidu had brought in his wife Nara Bhuvaneshwari and dairy executives to take things forward.
Heritage Foods then went on to work with lakhs of farmers over the years and transformed into one of India's largest dairy brands.
"In FY 2018-19, Heritage Foods recorded a turnover of Rs 2,482 crores. We are present in 15 states and have reached out to over three lakh dairy farmers," Brahmani Nara had told SMBStory in an earlier interview.
Now, the aim for Chandrababu Naidu's dairy brand is reaching six lakh farmers. Brahmani has set a target of 2024 to achieve this number. Meanwhile, the brand will continue launching new-value added products.
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