Lok Capital Completes Exit From Osam Dairy Investment

Lok Capital, one of India’s leading impact investment funds, announced its successful exit from Osam Dairy, a leading private dairy brand in Eastern India, following its acquisition by Dodla Dairy Ltd. The transaction marks a significant milestone in Osam’s growth journey and underscores Lok’s conviction that impact and financial returns can go hand-in-hand. 

When Osam was founded in 2012, its founders faced a highly challenging landscape. The dairy market in Bihar and Jharkhand was highly fragmented and dominated by state cooperatives Sudha in Bihar and Medha in Jharkhand leaving little room for private players. Supply chain infrastructure was weak, consumer purchasing power was relatively low, and there were no large private dairy brands operating in the region. Against these odds, Osam built an integrated model of direct milk procurement, in-house processing, and distribution of value-added products such as milk, curd, lassi, paneer, and sweets, all under the “Osam” brand. This approach created a scalable business, strengthened farmer livelihoods, and set new benchmarks for private dairy in Eastern India. 

Since Lok Capital’s investment in 2016, Osam has expanded its reach to over 1,000 villages, directly benefiting more than 50,000 farmers and supplying to over 30,000 retail outlets across Bihar and Jharkhand. The company has achieved a turnover of approximately INR 300 crore, demonstrating how locally anchored enterprises can deliver both strong social impact and sustainable commercial growth. Over the last 10 years, “Osam” became synonymous with quality product from locally sourced milk. 

The acquisition by Dodla Dairy Ltd., a leading listed dairy company, represents a strategic step to expand its footprint in Eastern India and a reaffirmation of the strong business foundation and supply chain network built by Osam. As part of this transaction, Lok Capital and British International Investment (BII), the UK’s development finance institution and impact investor, which co-invested through a partnership facilitated by Lok, have fully exited their investments.

 “Osam’s story is a remarkable example of entrepreneurship rooted in local understanding and execution excellence. Abhinav and Harsh have built a robust business that has improved farmer livelihoods while demonstrating that impact-led companies can generate compelling financial outcomes. We are proud to have been early partners in this journey.” said Mousum Pal Choudhury, Director at Lok Capital. 

“Our collaboration with Lok Capital to support Osam reflects BII’s commitment to backing enterprises that strengthen rural livelihoods and drive inclusive growth. We are proud of Osam’s impact in reaching over 50,000 farmers across Eastern India. This successful exit underscores how we can deliver scalable impact to underserved communities while achieving sustainable growth,” said Shilpa Kumar, Managing Director and Head of India at British International Investment. 

From the outset, Lok Capital’s investment in Osam was driven by its thesis of supporting scalable enterprises that strengthen rural livelihoods and promote inclusive growth, that too in capital scarce region of Eastern India. The successful exit reinforces Lok’s belief that investing in businesses addressing critical developmental challenges can deliver competitive financial returns while driving deep, measurable impact. As Osam transitions under Dodla Dairy’s leadership, Lok Capital remains confident that the brand will continue to thrive and play a pivotal role in transforming the dairy ecosystem in Eastern India.