Milky Mist and MilkLane forge Rs 400 crore partnership to supply traceable milk

100 kilolitres, or 1 lakh litres, of milk account for a small portion of the total 15 lakh litres of milk that Milky Mist processes on a day

MilkLane, a dairy and cattle feed business, will now supply 100 kilolitres of premium milk per day for three years to IPO-bound Milky Mist as part of a strategic partnership that the two firms entered into on April 3.  The partnership is set to boost MilkLane's revenue by Rs 400 crore over a three year period.

While 100 kilolitres, or 1 lakh litres, of milk account for a small portion of the total 15 lakh litres of milk that Milky Mist processes on a day, the company plans to use the high-quality milk for its premium set of products or even start a new line of products.

The development comes at a time when Milky Mist is gearing up for a Rs 2,000 crore initial public offering at Rs 20,000 crore valuation, as reported by Moneycontrol earlier this year.

“As we expand our product range and market reach, this collaboration will play a key role in reinforcing our position in the industry,” K Rathnam, CEO, Milky Mist Dairy, said in a prepared statement.

The collaboration tackles key industry challenges including raw milk quality, supply chain transparency, and operational efficiency, ultimately benefiting both farmers and consumers, he added.

“MilkLane addresses these challenges with a tech-driven approach, leveraging our network of 10,000+ farmers, 150+ strategically placed BMCs, and four-tier quality assurance with 40+ tests at central labs,” said Harish Sharma, Managing Director, MilkLane.