Hatsun Agro Product, an Indian dairy powerhouse, has entered into an agreement to acquire Milk Mantra Dairy for Rs 2.33 billion (approximately $26.9 million). This strategic move will bolster Hatsun’s position in the food and beverage industry, particularly in the eastern Indian dairy market.
In its announcement to the stock exchange, Hatsun Agro Product emphasized that this acquisition aligns with its overarching strategy to expand into new geographical markets. Headquartered in Bhubaneswar, Odisha, Milk Mantra operates a business model that complements Hatsun’s existing framework, reinforcing the latter’s footprint in Odisha and enhancing its overall market presence.
Established in 2009, Milk Mantra is recognized for its Milky Moo brand and currently operates solely within India. Over the last three financial years, the company has consistently reported growth in its turnover, showcasing its robust performance in the competitive food and drink business landscape.
In the fiscal year 2021-22, Milk Mantra recorded a turnover of Rs 2.67 billion, which slightly increased to Rs 2.72 billion in 2022-23. This positive trend continued into 2023-24, where turnover reached Rs 2.76 billion. Hatsun Agro Product sees this acquisition as a vital opportunity to tap into the northern Andhra Pradesh market, as well as explore potential expansion into areas such as West Bengal and neighboring states.
The Milky Moo brand will become a part of Hatsun’s established portfolio, which includes a range of products like milk, curd, ice creams, and dairy whitener, sold under popular brands such as Arun, IBACO, Hatsun, and Arokya. By integrating Milk Mantra, Hatsun aims to further enhance its offerings and cater to evolving food and drink consumer trends.
Last week, Hatsun Agro Product reported its financial results for the third quarter ending December 31. The company experienced a 28.6% decline in profit after tax, falling from Rs 574 million to Rs 409.4 million. Despite this setback, revenue from operations saw a 6.5% increase, reaching Rs 20.09 billion for the quarter. The earnings per share reported during this period were Rs 1.84, reflecting a decline of 28.68% compared to the previous year.
Hatsun Agro Product remains committed to navigating the challenges of the food and beverage industry while boldly adapting to food and drink industry trends. With this acquisition, the company is strategically positioned to not only sustain its competitive edge but to thrive in the dynamic landscape of the food and drink sector.
