Hatsun Agro Buys Milk Mantra For INR 233 Cr

Chennai-based Hatsun Agro has acquired Milk Mantra for INR 233 Cr (around $26 Mn) to expand its footprint in the dairy market. 

HAP in a BSE filing said that the company’s board has “approved the acquisition of 100% of the issued and paid-up share capital of the Milk Mantra Dairy Private Limited…”

Post acquisition, Bhubaneswar-based Milk Mantra will become a wholly-owned subsidiary of HAP, the filing added.

With this deal, HAP aims to expand its geographical footprint in Odisha and the eastern dairy market. It is also looking to explore its existing north Andhra Pradesh market and potential markets like West Bengal and adjoining states, the filing added. 

Besides HAP’s existing brands Arun, IBACO, Hatsun and Arokya, Milky Moo will be a new addition after acquisition. 

Founded in 2009 by Srikumar Misra and Rashima Misra, Milk Mantra began its operations in 2012. The startup sells products under two brands – Milky Moo and Moo Shake. It sells packaged milk, curd, paneer, lassi, mishti dahi, and flavoured milkshakes. 

After eight consecutive years of profitability, the startup slipped into loss in FY23 on an operating revenue of INR 272.9 Cr, a growth of only 2% year-on-year (YoY).

In FY24, the company again returned to profitability with a net profit of INR 9.8 Cr as against a net loss of INR 12.3 Cr in the previous fiscal, as it managed to control its expenses.

Milk Mantra’s operating revenue grew a mere 1.3% YoY to INR 276.4 Cr in FY24, with only pasteurised milk and curd categories seeing increase in sales. 

Hatsun Agro has been operational for five decades and expanded to more than 3700 retail outlets and over 20 processing plants.