The Moradabad facility, located on the Moradabad-Kanth Road at Agwanpur, has a milk processing capacity of about 500 metric tonnes per day and is a significant asset in Milkfood’s manufacturing footprint. Proceeds from the land sale are earmarked primarily for repaying outstanding borrowings (around ₹80 crore) and covering operational costs (about ₹17 crore), helping to stabilize the company’s financial position amid challenging market conditions.

Managing Director Sudhir Avasthi framed the transaction as part of a comprehensive reorganization plan designed to consolidate Milkfood’s business and address lender dues. The sale reflects an industry trend where legacy processing assets are monetized to unlock capital for debt reduction, operational efficiency and future growth initiatives.

While the buyer, Bareilly Dairies, is not connected to Milkfood’s promoter group or affiliates, the arm’s-length transaction underscores Milkfood’s focus on financial discipline and strategic repositioning. The deal does not just involve land — in some reporting the sale package is described as including land, buildings and plant machinery under an asset purchase agreement, further signaling a significant transfer of productive capacity.