Net proceeds from the sale are roughly ₹116.11 crore after taxes, providing a significant cash infusion for Milkfood. A substantial portion of this — about ₹75 crore — is earmarked for debt repayment, which is projected to reduce annual finance costs by around ₹9.25 crore. Additional savings on plant overheads are also expected to improve the company’s cost structure.

The Moradabad site, located on the Moradabad-Kanth Road at Agwanpur, historically had a processing capacity of about 500 metric tonnes of milk per day. While the manufacturing footprint is being scaled back through this disposal, Milkfood will leverage the proceeds to reinvest in its remaining operations and future growth areas.

Management says the asset sale reflects disciplined capital allocation as the company positions itself for the next phase of growth. Milkfood plans to invest in higher-margin dairy segments, specifically ice-cream, cheese, and butter production, sectors showing robust demand in urban and semi-urban markets across India.