Hatsun Agro, a major private sector dairy company, is acquiring Milk Mantra Dairy for Rs 233 crore to strengthen presence in Odisha and Eastern India.
"...upon successful completion of acquisition of 100% of the issued and paid up share capital, the Target Company will become a Wholly-Owned Subsidiary of HAP," Hatsun said in a statement.
Milk Mantra Dairy markets and sells milk and milk products with 'Milky Moo' brand in Odisha. The brand will be added to Hatsun's existing brands Arun, IBACO, Hatsun and Arokya.
The acquisition is in line with Hatsun Agro's strategic intent of entering into new geographical markets. "The business carried on by Milk Mantra Dairy is similar and complimentary to the business carried on by HAP," a company statement said. "It also gives scope to tap our existing North Andhra Pradesh market and potential markets like West Bengal and adjoining States," Hatsun added.
Milk Mantra Dairy's FY24 turnover was Rs 276 crore, and the company achieved an EBITDA of Rs 16.1 crore in FY24, along with a net profit of Rs 9.78 crore, which was a turnaround from a loss of Rs 12.3 crore in FY23. This acquisition is seen as a 'natural progression' to seek a broader market by Hatsun Agro.
In related news, an Odisha Minister had recently said the state government is planning to include 200 ml of fortified milk in mid-day meals for school children.
Milk Mantra had secured $10 million through a debt funding round from US International Development Finance Corporation in June 2020.
India's dairy space saw some expansion and acquisition activities in 2024, with food and beverage major Danone investing another Euro 20 million in a specialised nutrition facility in Punjab over the next four years. Danone's CEO Antoine de Saint-Affrique has talked about making India among the company's top five markets the world over. The company also said its launching a three-year program to train about 5,000 smallholder dairy farmers in Punjab with sustainable farming methods to increase milk yields, boost their incomes and improve cattle welfare.
India remains the largest producer of milk globally, contributing nearly 23% of the world's milk output.
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