Heritage foods: The reason why Chandrababu Naidu

Nara Chandrababu Naidu, a prominent figure in Indian politics, has not only made significant contributions to the development of Andhra Pradesh but has also amassed substantial personal wealth, primarily through his association with Heritage Foods. As of January 2025, Naidu is recognized as the richest Chief Minister in India, with a net worth of ₹931 crore.

Chandrababu Naidu: A Brief Biography

Born on April 20, 1950, in Naravaripalle, Andhra Pradesh, Chandrababu Naidu embarked on his political journey with the Indian National Congress before joining the Telugu Desam Party (TDP) in 1983. He became the Chief Minister of Andhra Pradesh in 1995 and has held the position multiple times since. Known for his focus on technology and infrastructure, Naidu played a pivotal role in transforming Hyderabad into an IT hub.

The Genesis of Heritage Foods

In 1992, Naidu founded Heritage Foods, a company specializing in dairy products and food processing. The company has since diversified its portfolio to include milk, curd, ice cream, and other dairy products, establishing a significant presence in southern India. Heritage Foods has grown to become a major player in the Indian dairy industry, contributing significantly to Naidu’s wealth.

Heritage Foods’ Market Performance

Heritage Foods has demonstrated robust financial performance over the years. As of December 2024, the company’s stock price stood at ₹484.15 per share, reflecting investor confidence in its operations. The company’s market capitalization is approximately ₹4,414 crore, indicating its substantial market presence.

Impact on Naidu’s Wealth

The Naidu family’s substantial stake in Heritage Foods has been a significant contributor to their wealth. In mid-2024, the family’s net worth saw a remarkable increase due to a surge in Heritage Foods’ stock price. Between May 23 and June 10, 2024, the stock price more than doubled, resulting in an increase of approximately ₹1,225 crore in the family’s wealth.

Political Implications

Naidu’s wealth has been a topic of discussion in political circles. Critics argue that while Andhra Pradesh faces economic challenges, the Chief Minister’s personal wealth continues to grow, raising questions about the intersection of business and politics. The Yuvajana Sramika Rythu Congress Party (YSRCP) has highlighted this disparity, questioning the sources behind Naidu’s financial rise.

Heritage Foods’ Financial Performance

Heritage Foods has maintained a healthy dividend payout of 28.6%, reflecting its profitability and commitment to shareholders. However, the company has reported a return on equity of 12.3% over the past three years, which some analysts consider modest. Despite this, the company’s consistent revenue growth and market expansion strategies have bolstered investor confidence.

Vygr take:

Chandrababu Naidu’s journey from a regional politician to the richest Chief Minister in India underscores the significant impact of strategic business ventures like Heritage Foods. While his political acumen has shaped Andhra Pradesh’s development, his business endeavors have substantially contributed to his personal wealth. As Heritage Foods continues to expand its market share and financial performance, it remains a testament to Naidu’s entrepreneurial vision.

With inputs from agencies
Image Source: Multiple agencies