INDIA – Indian dairy giant Hatsun Agro Product Limited (HAP) has signed a definitive agreement to acquire Milk Mantra Dairy for US$26.9 million, aiming to enter new geographical markets and strengthen its position in the eastern Indian dairy sector.
The acquisition aligns with HAP’s plan to broaden its reach, as stated in a stock exchange filing.
Milk Mantra, headquartered in Bhubaneswar, Odisha, operates in a similar space as HAP, making the acquisition both complementary and geographically strategic.
This deal will solidify HAP’s presence in Odisha and the eastern Indian dairy market, a region with immense potential.
Established in 2009, Milk Mantra, known for its “Milky Moo” brand, has demonstrated consistent growth over the past three financial years.
The company’s revenue rose from ₹2.67 billion in 2021-22 to ₹2.76 billion in 2023-24, reflecting a positive trajectory.
HAP sees this acquisition as an opportunity to leverage its existing network in northern Andhra Pradesh and tap into potential markets like West Bengal and neighboring states.
The “Milky Moo” brand will be integrated into HAP’s existing brand portfolio, which includes Arun, IBACO, Hatsun, and Arokya, offering a wider variety of dairy products to consumers.
This news comes after Hatsun Agro Product reported its financial results for the third quarter ending December 31, 2024.
The company’s revenue from operations grew by 6.5% to ₹20.09 billion, while profit after tax witnessed a decline of 28.6% to ₹409.4 million compared to the same period last year.
Meanwhile, the Indian dairy market is expected to witness significant growth in the coming years, driven by factors like rising disposable income, urbanization, and increasing health consciousness.
This acquisition positions Hatsun Agro Product to capitalize on this growth potential by expanding its market presence and product offerings.
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