Hatsun Agro expands market reach with acquisition of Milk Mantra for ₹233 crore

In a bid to enter the Eastern markets, the Chennai-based Hatsun Agro Product Limited (HAP) has acquired the Bhuvaneshwar-based Milk Mantra Dairy Pvt Ltd for ₹233 crore. This is the first acquisition of a dairy after a gap of ten years, said RG Chandramogan, Chairman, HAP. In 2013, HPA acquired the Hyderabad-based Jyothi Dairy Private Limited, he told businessline.

Upon successful completion of acquisition of 100 per cent of the issued and paid up share capital, Milk Mantra will become a wholly-owned subsidiary of HAP, says a filing by HAP to the stock exchanges.

Milk Mantra Dairy markets and sells milk and milk products under the brand ‘Milky Moo’ in Odisha. It reported revenue of ₹276 crore in 2023-24.

The acquisition is in line with the HAP’s strategic intent of entering into new geographical markets. The business carried on by Milk Mantra is similar and complimentary to the business carried on by HAP, the filing said.

This acquisition strengthens HAP’s presence in Odisha and the Eastern India dairy market. It also gives scope to tap HAP’s existing North Andhra Pradesh market and potential markets like West Bengal and adjoining States.

The Milky Moo brand will be added with existing stable brands of HAP’s Arun, IBACO, Hatsun and Arokya, the filing said.

At the time of filing this report, HAP’s share price on the NSE was trading at ₹954.90, up by ₹0.10 or 0.01 per cent.