**Milky Mist Dairy Aims for Growth with Value-Added Products**
Milky Mist Dairy Food Ltd, a prominent player in the dairy sector, is strategically focusing on enhancing its margins and revenue through an increased emphasis on value-added dairy products. The company is gearing up for an initial public offering (IPO), with expectations to raise up to $240 million (₹2,000 crore). K. Rathnam, the CEO of Milky Mist Dairy, highlighted the significant potential in products such as probiotic curd, sweetened condensed milk, and protein-rich paneer, which cater to premium consumers prioritizing nutrition over cost.
Rathnam noted, “Protein products are our fastest-growing category, and there is great potential for further growth. The category is evolving and is contributing well to our topline.” The company’s products, treated at ultra-high temperatures, ensure extended shelf life by eliminating bacteria. He emphasized that over 70% of the population fails to meet their daily protein requirements, and post-COVID consumption patterns have shifted towards high-quality nutritional products.
In the fiscal year 2024, the Erode-based company reported a revenue increase to ₹1,900 crore from ₹1,437 crore the previous year, although profits dipped to ₹19.46 crore from ₹28 crore. Despite a slowdown in consumption, Rathnam stated that the company’s topline continued to grow year-on-year in FY25, with improvements in EBITDA and profit after tax.
Milky Mist currently operates a facility near Erode, Tamil Nadu, capable of processing 1.25 million liters of milk daily. The company is investing ₹620 crore to expand this capacity to 2 million liters, with completion expected by the end of the calendar year. Rathnam mentioned ongoing expansions, including a new cheese plant and a paneer facility, as part of their commitment to integrating new technologies alongside their growth.
Founded in 1997 by Sathish Kumar, Milky Mist initially focused on paneer products before diversifying into a broader range of dairy offerings, including curd, buttermilk, khoya, milkshakes, cheese, and ghee. The company strategically chose not to sell milk directly due to its low margins and high costs. Rathnam, who previously served as managing director of Amul Dairy, explained, “From the beginning, we focused on paneer and other dairy products because processing milk requires a decentralized processing plant. A single processing unit helps us maintain strict control over quality.”
In summary, Milky Mist Dairy is poised for significant growth by leveraging the demand for value-added dairy products, enhancing production capabilities, and adapting to changing consumer preferences.
**FAQ**
**What is Milky Mist Dairy’s growth strategy?**
Milky Mist Dairy is focusing on expanding its range of value-added products, such as probiotic curd and protein-rich paneer, to enhance margins and revenue while preparing for an IPO.
