image credits: marcamoney
In an ambitious move to expand its footprint in the growing dairy market of Eastern India, Chennai-based Hatsun Agro Product Limited (HAP) has acquired Milk Mantra Dairy Private Limited for a significant sum of Rs 233 crore.
This strategic acquisition marks a significant milestone in the dairy industry, signaling Hatsun Agro’s intent to fortify its presence in Odisha and beyond, leveraging Milk Mantra’s established brand, ‘Milky Moo’, which has been a staple in the local market since its inception in 2009.
Strategic Expansion in Eastern India
Hatsun Agro’s acquisition of Milk Mantra is not merely a business transaction but a calculated step toward market expansion. The dairy sector in Eastern India, particularly in Odisha, has shown promising growth, and with this acquisition, HAP aims to tap into this potential.
The move aligns with HAP’s strategic intent of entering new geographical markets, as Milk Mantra’s business model and product range complement Hatsun Agro’s existing portfolio, which includes brands like Arun, IBACO, Hatsun, and Arokya.
Financial Insights of Milk Mantra
Milk Mantra Dairy reported a turnover of Rs 276 crore in the fiscal year 2024, with an EBITDA of Rs 16.1 crore and a net profit of Rs 9.78 crore, marking a turnaround from a loss of Rs 12.3 crore in the previous fiscal year.
This financial performance indicates Milk Mantra’s resilience and growth trajectory, making it an attractive acquisition for Hatsun Agro. The deal, valued at Rs 233 crore, reflects Hatsun Agro’s confidence in Milk Mantra’s market position and future potential.
Over the last three fiscal years, Milk Mantra has seen an increase in its turnover, showcasing consistent growth despite market challenges.
Founder and Leadership of Milk Mantra
Milk Mantra was founded in 2009 by Srikumar Misra, who has been instrumental in driving the company’s vision of creating truly pure dairy products through conscious capitalism.
Misra, along with co-founder Rashima Misra, has led Milk Mantra to become a pioneer in addressing consumer trust deficits in the dairy sector by introducing innovative, premium dairy products.
Their leadership has been pivotal in navigating the competitive landscape and establishing Milk Mantra as a brand synonymous with quality and ethical sourcing.
Operational Details of Milk Mantra
Milk Mantra operates exclusively in India, with its headquarters in Bhubaneswar, Odisha. The company has established a robust network, sourcing milk from over 75,000 dairy farmers across Odisha and neighboring states under its Ethical Milk Sourcing Programme.
This initiative not only ensures fair payment to farmers but also includes extension services aimed at sustainable dairy development.
Milk Mantra has set up dairy processing plants in several locations within Odisha, including Gop, Konark, Hatibari, and Sambalpur, enhancing its operational capacity.
Brands Under Milk Mantra
Milk Mantra operates under two main brand names:
- Milky Moo: This is the flagship brand of Milk Mantra, offering a range of dairy products like Truly Pure Milk, Probiotic Dahi, Pouch Dahi, soft and creamy Paneer, refreshing Lassi, buttermilk, and Meethi Mishti Dahi. Milky Moo aims to provide premium, health-focused dairy products, emphasizing purity and ethical sourcing.
- MooShake: Known as the world’s first milkshake with curcumin, MooShake represents Milk Mantra’s venture into the functional beverage category. Available in flavors like Nutty Badam, Peachy Strawberry, Slurpy Mango, Oh So Chocolatee, and Vanilla O La LA, MooShake combines traditional milkshake enjoyment with health benefits from curcumin, an extract from turmeric.
Market Dynamics and Competition
The acquisition comes at a time when the dairy market in India is witnessing consolidation and expansion activities. Milk Mantra’s competitive landscape includes other innovative dairy startups like Country Delight, Akshayakalpa, and Sid’s Farm.
However, Hatsun Agro’s entry into this market with Milk Mantra could alter the competitive dynamics, offering consumers a blend of traditional and modern dairy products under a well-recognized brand umbrella.
Implications for Local Consumers
For consumers in Odisha and Eastern India, this acquisition means access to a broader range of dairy products under the trusted HAP brand. It also signifies potential improvements in product quality, innovation, and distribution due to the combined strengths of both companies.
Moreover, the integration could lead to better pricing strategies, making dairy products more accessible to the local populace.
Future Prospects
Hatsun Agro’s strategy with this acquisition goes beyond mere market expansion. It’s about creating a sustainable growth path in a region known for its dairy consumption.
The company’s vision includes not just reinforcing its presence in Odisha but also exploring markets in North Andhra Pradesh, West Bengal, and neighboring states. Such expansion is pivotal as it aligns with India’s broader aim to strengthen its dairy sector, which plays a crucial role in the rural economy and nutrition security.
