NEW DELHI: After the release of the Association for Democratic Reforms (ADR) report on the wealthiest politicians,
Andhra Pradesh chief minister N Chandrababu Naidu’s family firm Heritage Foods Ltd issued a clarification, stating that approximately 82% of CM’s wealth worth Rs 931 crore is on account of his kin’s shareholding in a dairy product retailing firm.
His family’s ownership in a dairy retail enterprise was established during India’s economic liberalisation under Manmohan Singh over 30 years ago, according to company officials.
Heritage Foods Ltd, established in 1992 and listed publicly in 1994, has no direct shareholding by Naidu. However, his wife Bhuvaneswari Nara‘s 24.37% stake, valued at roughly Rs 763 crore, contributes to the Andhra chief minister’s reported wealth.
The ADR has identified Naidu as the wealthiest chief minister with assets exceeding Rs 931 crore.
Heritage Foods officials emphasised that the company operates purely in dairy retail, avoiding sectors typically associated with crony capitalism like infrastructure.
The company’s success relies solely on consumer acceptance, without government subsidies or support. Notably, the firm’s establishment preceded Naidu’s chief ministership, occurring when he was merely an MLA, and its stock market listing came before his elevation to the chief minister position.
In the early 1990s, Chittoor district in united Andhra Pradesh, Naidu’s home region, led in milk production.
The district experienced a milk surplus and marketing challenges for dairy farmers in 1992.
Following Dr Manmohan Singh’s economic liberalisation in 1991-92, various sectors, including dairy, welcomed private investment and entrepreneurship.
Capitalising on this opportunity, Naidu launched Heritage Foods in 1992, investing Rs 50 lakh initially to establish the first milk chilling unit in Chittoor, supported by Bank of Baroda loans. He served as managing director for two years.
Upon becoming minister in 1994, Naidu stepped down, with his wife assuming the role of executive director and later managing director. The company’s public listing in 1994 showed a market capitalisation of Rs 25 crore, which grew alongside the company’s expansion.
The organisation cleared all loans from Bank of Baroda and other nationalised banks, achieving debt-free status post-COVID.
Currently, Heritage Foods commands a market value of Rs 4400 crores, generates Rs 3750 crores in revenue, and maintains operations across 12 Indian states. Its asset base stands at Rs 600 crores, with recognised strength in quality dairy products and distribution.
The enterprise operates under the leadership of Managing Director Bhuwaneswari Nara and Executive Director Nara Brahmani, Naidu’s daughter-in-law, who has served for a decade. Brahmani, married to Nara Lokesh, holds a Stanford business school degree and brings experience from prominent global dairy organisations.
