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Andhra Pradesh Chief Minister N. Chandrababu Naidu’s family firm, Heritage Foods Ltd, has clarified the source of their wealth, which is listed as approximately Rs 931 crore in the Association for Democratic Reforms (ADR) report. According to the company, 82% of Naidu’s wealth comes from his family’s shareholding in a dairy product retailing firm. The firm, established in 1992, was listed publicly in 1994 and operates solely in the dairy retail sector, with no government subsidies or support.
The company’s success can be attributed to its focus on consumer acceptance, rather than crony capitalism, and its establishment in the early 1990s, when Andhra Pradesh was a leading milk-producing state. Naidu, who was an MLA at the time, launched Heritage Foods with an initial investment of Rs 50 lakh, with the support of Bank of Baroda loans. He served as managing director for two years before stepping down and his wife, Bhuvaneswari Nara, took over as executive director and later managing director.
The company’s public listing in 1994 showed a market capitalization of Rs 25 crore, which grew alongside the company’s expansion. Today, Heritage Foods has a market value of Rs 4,400 crores, generates revenue of Rs 3,750 crores, and operates in 12 Indian states with an asset base of Rs 600 crores. The company is led by Managing Director Bhuvaneswari Nara and Executive Director Nara Brahmani, Naidu’s daughter-in-law, who has a degree from Stanford Business School and brings experience from global dairy organizations.
The ADR report identified Naidu as the wealthiest chief minister, with assets exceeding Rs 931 crore. However, Heritage Foods Ltd has clarified that this wealth is largely due to his family’s shareholding in a dairy product retailing firm, which has no direct connection to his position as chief minister. The company’s success is a testament to its focus on consumer acceptance and its ability to thrive in a competitive market, rather than relying on government support or crony capitalism.