Dependant on the supply of large amounts of raw milk.
COVID-19 pandemic and other health concerns that may impact the procurement, distribution, or sale of milk.
Contamination of milk or product tampering resulting in a legal liability.
Seasonal change in the demand and supply of milk and its inability to forecast it accurately.
Procurement and processing are primarily based in South India. Hence, any adverse developments in this region can potentially impact its operations.
Inability to service existing debt agreements.
Certain financing arrangements have variable interest rates.
Its subsidiaries, OPL and Dodla Kenya have incurred losses in the past.
The company has certain contingent liabilities.
Improper storage or handling of the raw milk or finished products (since they are perishable).
Pending legal proceedings against the promoters Dodla Sunil Reddy and Dodla Sesha Reddy.
Adapting to changing consumer preferences.
Inability to procure the desired quantity and quality of raw materials.
No long-term agreements with most customers.
Outstanding litigation proceedings against the company and its directors.