Need help?

Profitable Dairy Products Company for Sale in Varanasi, India

Acquire a 1 lakh LPD dairy unit with passive rental income of INR 1Cr/annum.
This Business is on a Premium Plan
Established 5-10 year(s)
Employees 10 - 50
Legal Entity Private Limited Company
Reported Sales USD 2 - 3 million
Run Rate Sales USD 107 thousand
EBITDA Margin 30 - 40 %
Industries Dairy Products
Locations  Varanasi
Local Time 4:06 PM Asia / Kolkata
Listed By Business Owner / Director
Status Active
Overall Rating
Full Sale
Asking Price: USD 1.86 million (Native Currency: INR 165,000,000)
Reason: Owner is located in a different state and would like to invest in other businesses.
Includes physical assets worth USD 1.75 million
Interested to connect with advisors
Name, Phone, Email
Available after connect
Business Name
Not disclosed
User Verification
Documents
Business Overview
- Established 10 years ago, the dairy business is strategically located in the culturally rich city of Varanasi, providing a strong local market presence.
- The unit, with a capacity of processing 1 lakh liters per day (LPD), is currently operating under a lease agreement, generating a passive rental income of INR 1 crore annually.
- In the fiscal year 2 years ago, the business recorded a robust revenue of INR 55 crore, highlighting its operational success and market acceptance.
- The core product offerings focus on dairy items, which have been packaged for a leading brand, ensuring quality and brand recognition in the competitive market.
- The business model allows for flexibility; potential buyers can continue the lease with the current renowned tenant or explore direct operations to unlock a significant top-line potential of INR 180 crore annually.
- With 35 employees, the plant maintains a manageable size while providing opportunities for scalability under direct operation.
- Given its current setup, the unit presents a low-risk investment with immediate returns and significant expansion prospects, ideal for investors seeking a foothold in the burgeoning food & beverage sector.
- The owner is based in a different city and has other business interests, hence has leased out the facility to generate passive income and the sales have dropped. Multiple possibilities exist for a potential buyer.
- As the facility is currently rented, we are achieving a very high EBITDA margin (over 90%).
- The registered address of the company is in Chennai, while the operations are in Varanasi.
Products & Services Overview
The business's top-selling products are dairy items, which are being packaged for a leading brand.
Assets Overview
Tangible assets: land, building, fully operational plant including lab and other fixed assets.
Land and building - INR 7.5 crore.
Plant, machinery, equipment - INR 8 crore.
Intangible asset: Running plant, all approvals, long term leases of additional land, rental inflow from tenant via registered lease.
Facilities Overview
The factory is approximately 15,000 sq feet on a total site of nearly 40,000 sq feet.
- 5-year registered lease starting going till 2029.
Rental income of INR 1 crore/year approx.
Situated in a part of Varanasi with rapid land appreciation.
Capitalization Overview
Self funded, one director owns 98% of shares.
Recent Activity
Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct. Note that SMERGERS is not liable for any loss, damage, costs, claims and expenses whatsoever arising from transacting with any other user from the website. The final responsibility of conducting a thorough due diligence and taking the transaction forward lies with the users. Please read best practices on SMERGERS.
Contact Business
11 Buyers already contacted this Business. Register below to connect now!
Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
You might also be interested in these businesses
    Frequently
    Asked
    Questions
    • Why can’t I see the business’ name or contact number? How do I contact the business?
    • What level of due diligence does SMERGERS conduct on the businesses/member?
    • How active are the business profiles listed on SMERGERS?
    • How does SMERGERS rate business profiles?
    • Do I need to pay to connect with a business?
    • Show more