Exclusive: Desi Farms Acquires 28-Year-Old Suruchi Dairy For INR 130 Cr

Pune-based D2C dairy brand Desi Farms has acquired Suruchi Dairy, a much larger and older dairy company, for about INR 130 Cr in an all-cash deal.

While Desi Farms acquired a 51% stake in Suruchi Dairy in June, it will acquire the remaining 49% stake next month, Desi Farms founder and CEO Sunil Shahi told Inc42.

To fund the acquisition, the D2C brand is raising about INR 100 Cr from a consortium of angel investors and family offices, Shahi said. The funding round will see participation from existing investors like NAV Capital VCC – NAV Capital Emerging Star Fund, NVS Corporate Consultancy Services along with the fresh investment from Binny Bansal’s 3State Ventures.

Besides, Desi Farms is raising a debt of INR 50 Cr, the CEO said. 

Founded in 1997, Pune-based Suruchi Dairy processes up to 3.5 Lakh litres of milk daily, producing a wide variety of fresh dairy items such as pouch milk, ghee, paneer, chilled flavoured milk, milk powder, shrikhand, and curd. 

Meanwhile, Shahi, who was a former CEO of Greaves Cotton, started the journey in the dairy industry with the acquisition of a B2B dairy business in 2022. Subsequently, he transformed it into a farm-to-table D2C brand under the name Desi Farms.

Today, Desi Farms sells milk and milk products via its own website, quick commerce platforms, and its outlets. The brand offers services in Pune, Mumbai and Navi Mumbai.

Desi Farms, which featured in Inc42’s FAST42 edition this year, has been profitable for the past three years. It reported a profit of INR 1.4 Cr in FY24 on an operating revenue of INR 20.1 Cr.

Shahi said that the brand’s revenue zoomed to INR 38 Cr in FY25, while profit stood at INR 2 Cr. These numbers are expected to see a sharp increase post the acquisition of Suruchi Dairy, which posted a revenue of INR 204.4 Cr in FY24 and a profit of INR 2.7 Cr.

Notably, Desi Farms, which competes with the likes of Milky Mist, Country Delight and Akshayakalpa, acquired Vedaaz and Smiling Nature last year as part of its expansion plans.