Mumbai: Hatsun Agro Product Ltd (HAP), a dairy manufacturer, has announced the acquisition of 100% share capital in Milk Mantra for ₹233 crore ($27.5 million). This strategic move aims to bolster HAP’s footprint in Eastern India’s dairy market, particularly in Odisha, where Milk Mantra’s flagship brand, ‘Milky Moo’, holds a significant market share. The company disclosed the details in a stock exchange filing.
The transaction will be executed through a series of Share Purchase Agreements (SPAs) and related documents with Milk Mantra’s promoters and shareholders. Upon completion, Milk Mantra will operate as a wholly-owned subsidiary of HAP.
Established in 2009, Milk Mantra offers a diverse product range, including milk, curd, cottage cheese, buttermilk, and cattle feed. Over the years, it has secured nearly $35 million in funding from investors such as Aavishkaar Capital, Fidelity Growth Partners, Neev Fund, Eight Roads Ventures, and the U.S.-based DFC.
In the fiscal year 2023-2024, Milk Mantra reported an operating revenue of ₹276.42 crore and a profit of ₹9.78 crore. However, the acquisition cost of ₹233 crore reflects a valuation of less than 1x sales, indicating a slump sale. The company’s revenue has remained largely stagnant over the past three fiscal years.
In 2021, Milk Mantra had set an ambitious target of reaching ₹1,000 crore in revenue within five years. However, its recent performance suggests this goal may remain elusive.
Meanwhile, competitors like Milky Mist have demonstrated significant growth, reporting ₹1,907.21 crore in revenue for FY24. Milky Mist is also preparing for an IPO this year, aiming to raise approximately ₹2,000 crore. Additionally, Milk Mantra faces stiff competition from emerging players such as Country Delight, Akshayakalpa, and Sid’s Farm.
This acquisition aligns with HAP’s strategy to expand its market presence and product offerings in the Indian dairy sector. The company anticipates that integrating Milk Mantra’s established brand and distribution network in Eastern India will enhance its growth trajectory and market share in the region.
