Milky Mist Food to construct US$125.6M dairy unit in Maharashtra

INDIA – Milky Mist Dairy Food Ltd has signed a memorandum of understanding (MoU) with the Government of Maharashtra to set up a large-scale milk processing and dairy products manufacturing facility in the state.

The total project investment is estimated at US$125.6 million (Rs 1,130 crore) and is expected to generate direct employment for about 800 people, providing a significant boost to local livelihoods and the regional dairy ecosystem.

Under the MoU, Milky Mist will establish a 10 lakh litre per day (LLPD) milk processing plant, expandable up to 25 LLPD, with a diverse product portfolio including paneer, yoghurt, curd, mozzarella cheese, ice cream, butter and ghee.

The project will be developed on a land parcel measuring 194,866 square metres (approximately 48.15 acres), with the land allotted by the Maharashtra Industrial Development Corporation (MIDC). 

The project will be implemented in a phased manner. Milk procurement for the facility will be sourced within the state.

Commenting on the agreement, K Rathnam said, “This MoU reflects our long-term commitment to strengthening India’s dairy value chain while creating sustainable economic opportunities for farmers and communities. Maharashtra’s progressive policies, robust infrastructure and strong milk-producing regions make it an ideal partner for our next phase of growth.”

The MoU was signed at the ongoing World Economic Forum (WEF) Annual Meeting in Davos, in the presence of Maharashtra Chief Minister Devendra Fadnavis.

The agreement was executed by K Rathnam, chief executive officer of Milky Mist, marking a significant step in the company’s expansion plans beyond southern India.

Founded in 1997 by entrepreneur T Sathish Kumar, Milky Mist has grown into one of India’s leading value-added dairy companies, known for its strong farmer linkages, technology-driven operations and premium dairy offerings across domestic and international markets.

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In 2025, the company received approval from the Securities and Exchange Board of India (SEBI) to raise ₹2,035 crore through an initial public offering (IPO).

A substantial part of the funds, around ₹750 crore, will go towards debt reduction, while ₹414 crore will finance the expansion and modernisation of its Perundurai manufacturing facility in Tamil Nadu.

The company will also invest in cold-chain infrastructure and allocate a portion to general corporate purposes.

Milky Mist, known for its exclusive focus on value-added dairy products such as paneer, curd, cheese, and yoghurt, has grown into a major FMCG-style brand with strong farmer linkages and in-house logistics.

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