According to the company, proceeds from the asset sale will be used primarily to reduce debt and enhance financial flexibility, supporting long-term operational resilience. Management highlighted that monetising non-core assets allows Milkfood to reallocate capital toward higher-return segments, reinforcing its commitment to sustainable and profitable expansion.

The Moradabad property had remained underutilised for several years, and its divestment reflects a disciplined capital management approach. By converting dormant assets into cash, Milkfood aims to strengthen its financial ratios while creating headroom for investments aligned with evolving market demand in value-added dairy products.

Milkfood said the improved balance sheet positions the company to accelerate growth initiatives, including capacity optimisation and product portfolio expansion. The move is expected to support strategic execution across its dairy operations, particularly in a competitive environment marked by cost pressures and changing consumer preferences.