In a strategic move to broaden its reach in the dairy sector, Chennai-based dairy company, Hatsun Agro Product (HAP) has acquired Bhubaneswar-based Milk Mantra Dairy for INR 2.33 billion (approximately US$ 27 million). The acquisition, approved by HAP’s board on January 20, 2025, aims to expand the company’s presence in Odisha and other eastern states, marking a major step forward in its efforts to strengthen its position in the eastern Indian market.
Hatsun Agro finalized the deal through share purchase agreements, securing 100% ownership of Milk Mantra. The total purchase price for the acquisition stands at INR 2.33 billion, and the transaction is expected to be completed within a month. Upon conclusion, Milk Mantra will operate as a wholly-owned subsidiary of HAP.
Milk Mantra Dairy, established on August 4, 2009, is well-known for its dairy products marketed under the brand name “Milky Moo.” The company reported a revenue of INR 2.76 billion US$ 34.55 million for the financial year 2023-24. This acquisition enables HAP to expand its presence in Odisha and other eastern states, including potential markets in West Bengal and adjacent regions. It also opens opportunities for synergy with HAP’s existing operations in North Andhra Pradesh.
Hatsun Agro’s Strategic Expansion Goals
The acquisition of Milk Mantra is Hatsun Agro’s first dairy acquisition in over a decade, following its 2013 acquisition of Hyderabad-based Jyothi Dairy Pvt Ltd. The addition of Milk Mantra aligns with HAP’s strategy to explore new geographic territories while complementing its existing product portfolio. Milk Mantra’s operations in Odisha and its established market presence provide HAP with a strong foothold in the region.
The Milky Moo brand will join Hatsun Agro’s well-established lineup, which includes Arun, IBACO, Hatsun, and Arokya. The integration of Milk Mantra’s offerings with HAP’s brands is expected to enhance customer options and drive further growth.
At the time of the announcement, HAP’s shares were reflecting minimal movement but showcasing investor confidence in the strategic decision. The acquisition signifies a bold step for HAP as it seeks to strengthen its market position in India’s dairy sector.
Hatsun Agro Product Ltd., a player in the fast-moving consumer goods dairy segment, has consistently demonstrated its commitment to growth and market leadership. Milk Mantra’s addition to HAP’s portfolio reflects this vision, paving the way for expansion in one of India’s most promising dairy markets. This acquisition reaffirms HAP’s commitment to growth and marks a noteworthy development in the Indian dairy industry.