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Milky Mist eyes growth without fresh debt; targets Tier 1, 2 and 3 cities

admin — Wed, 12 Aug 2026 13:53:00 +0000

Sathishkumar T (left) , CMD, Milky Mist Dairy Food Ltd and K. Rathnam, Whole-time Director and CEO, at a press conference in connection with the company’s IPO, in Chennai.
| Photo Credit: The Hindu

Milky Mist, whose ₹1,553-crore initial public offering (IPO) is currently on tap, plans to expand into West and North India for which funding would come from “internal accruals” rather than fresh borrowings., according to its CEO and Whole-time Director Dr. K Rathnam

The company, which positions itself as a packaged foods company, is preparing its next phase of expansion, including a new manufacturing facility in Maharashtra as it eyes Tier 1, 2 and 3 cities.

Of the proceeds from the IPO, the company, which has seen its topline grow at 30%, would use about ₹500 crore to repay debt, on top of ₹300 crore already repaid using funds from a pre-IPO placement. The Erode-based company’s net debt stood at ₹1,671.85 crore in the latest fiscal year.

Ahead of the IPO’s opening (on August 11), Milky Mist allotted 3.32 million equity shares to 19 anchor investors, raising approximately ₹465.29 crore at the upper price band of ₹140 per share.

“The remaining part will be for capital expenses, which we have identified already. And part will be market-building activities and part will be for internal expenses,” Rathnam said during an interaction.

Elaborating on Maharashtra project, he said the company has acquired 50 acres of land from the Maharashtra Industrial Development Corporation (MIDC) in Baramati, though no government approvals have been secured so far and it is still working out project timelines.

Citing transportation costs and proximity to consumers as key considerations for the proposed investment; he said “the Western market is growing, evolving very fast. As per our data, in 2030, our visibility will be ₹1,500 crores. Revenue will come from that area,” Mr. Rathnam said.

Asked why Milky Mist’s price-to-earnings ratio (about 85 times its earnings-per-share) appeared higher than the industry average, he said the company focusses on value-added products, making it fundamentally different from milk-led businesses. He added that the company should be benchmarked against packaged food and FMCG businesses.

Ruling out plans to plans to enter the milk business; he said existing players already cater to that market, while Milky Mist intends to focus on specialised, value-added products, particularly protein-based offerings.

Asked about its maket share target, Rathnam said “rather look at the 1.4 billion population. I am touching only 1 crore population (consumers). I want to touch 5 to 10 crores going forward.”

Sathishkumar T, Chairman and Managing Director, said the company’s strategy “is to focus on Tier 1, 2 and 3 cities and middle class and upper middle class” consumers rather than rural areas.”

Published – August 12, 2026 07:23 pm IST

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Milky Mist IPO to open on August 11

admin — Thu, 06 Aug 2026 10:47:00 +0000

Dairy products maker Milky Mist Dairy Food Ltd on Thursday fixed a price band of ₹133-140 per share for its ₹1,553 crore initial public offering (IPO), which will open for subscription on August 11.

The Erode-based company’s IPO comprises a fresh issue of equity shares aggregating up to ₹1,428 crore and an Offer For Sale (OFS) of up to ₹125 crore, taking the total issue size to ₹1,553 crore.

K. Rathnam, Chief Executive Officer of Milky Mist, told The Hindu on Thursday that part of the funds to be raised from the IPO would go towards closing its debts and the rest would be used for investments.

Singapore sovereign fund Temasek invested ₹482 crore in the 27-year old company in May this year, taking a 5 % stake.

The company, which makes paneer and curd to chocolates and ice creams at its plant in Perundurai registered ₹3,200 crore turnover in FY26. It has seen a 30% topline growth in the last three to four years, according to Rathnam.

The company also plans to expand its cold-chain infrastructure by deploying visi coolers, ice cream freezers and chocolate coolers, besides using a portion of the proceeds for general corporate purposes.

The company — whose sub brands include Capella, Asal, Smartchef, and Briyas. — has reserved 50% of the offer for qualified institutional buyers, 15% for non-institutional investors and 35% for retail investors.

Published – August 06, 2026 04:17 pm IST

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Dairy Agreement Next Flashpoint Between Congress, BJP In Madhya Pradesh

admin — Wed, 11 Sep 2024 17:38:31 +0000

The Madhya Pradesh government has signed a five-year agreement with the National Dairy Development Board (NDDB) to manage and run the state’s cooperative dairy federation and its associated milk unions. The move has sparked a political row, with the Congress drawing a parallel with the Amul-Nandini milk controversy from Karnataka’s assembly elections.

The Opposition alleges that this agreement is an attempt to hand over Madhya Pradesh’s popular Sanchi milk brand to Gujarat’s Amul, a claim the government strongly denies, terming it a baseless dispute aimed at confusing the public.

Milk Production in Madhya Pradesh

Madhya Pradesh currently produces around 5.51 crore liters of milk daily, contributing 9-10 per cent of the country’s total milk production.

The state has a significant livestock population, with 2.19 crore cattle making up 9 per cent of India’s total. Of this, 51 per cent are indigenous cows, 42 per cent are buffaloes, and 7 per cent are crossbred cows. Milk availability per person in Madhya Pradesh stands at 644 grams per day, well above the national average of 459 grams.

The government plans to double the state’s milk production in the next five years, a goal for which NDDB will prepare the blueprint.

Chief Minister Mohan Yadav has defended the decision, saying it is aimed at boosting the income of farmers and cattle rearers and making the state a leader in milk production.

He emphasized that if required, amendments will be made to the Cooperative Act to support this initiative.

Congress’s Vivek Tankha, however, accused the government of backdoor dealings, comparing the situation to the Nandini-Amul controversy of Karnataka.

He claimed Amul is trying to take over Sanchi, a trusted household name in Madhya Pradesh, and vowed that the party would fight this issue in Parliament, the assembly, and even courts if necessary.

Responding to the allegations, Animal Husbandry Minister Lakhan Patel said the Congress is spreading misinformation.

He highlighted that the agreement with NDDB is intended to strengthen Sanchi’s operations, expand its marketing, and explore new opportunities.

Despite the political debate, the NDDB’s successful management in other states cannot be ignored. The organization has increased milk production capacities across India:

* Jharkhand Milk Federation: From 11 TKgPD to 200 TKgPD
* Paschim Assam Milk Union: From 4 TKgPD to 53 TKgPD
* Varanasi Milk Union: From 4 TKgPD to 80 TKgPD
* Vidarbha-Marathwada Dairy Project: 450 TKgPD.

The NDDB has also revived the struggling Mahananda Dairy in Maharashtra and took over the responsibility of milk supply to the army from Ladakh Milk Union.

Moreover, it has formed a joint venture with the Assam government to produce 10 lakh liters of milk per day.

Dairy Sector in Madhya Pradesh

Madhya Pradesh has a strong livestock contribution to its economy, accounting for 7.5% of the state’s Gross State Value Added (GSVA), compared to the national average of 5.5 per cent.

Yet, only 2 per cent of the state’s milk is currently collected through cooperatives, far below the national average of 10 per cent.

Over the last five years, milk marketing has declined in major unions, particularly in Gwalior and Jabalpur.

The state government believes that once the milk collection, marketing, and economic conditions of these unions improve, management will return to state control.

For now, the agreement with NDDB will focus on the overall development of the dairy sector in Madhya Pradesh.

The agreement aims to expand dairy cooperatives and provide support to farmers’ organizations and self-help groups, improve milk quality in collection, transportation, and processing, upgrade infrastructure and ensure digitization in existing dairy plants, develop plans for marketing milk products both within India and internationally.

The government asserts that these efforts will double milk production in the state, benefiting 40,000 villages, increasing farmers’ income, and enabling them to produce bio kitchens and organic fertilisers.

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