Milky Mist, a major Indian dairy brand, is gearing up for an IPO with a projected valuation of Rs 20,000 crore. Founded in 1985 and known for its diverse dairy products, the company aims to expand its market presence and challenge industry leaders like Amul. After unsuccessful private funding attempts, Milky Mist has opted for public listing to fuel growth and enter new markets.
Milky Mist, founded by T Sathish Kumar in Erode, is preparing for an initial public offering (IPO) with an anticipated valuation of Rs 20,000 crore. The company, known for its diverse dairy products, closed FY 24 with a turnover of Rs 2,000 crore and a profit of Rs 50 crore. Milky Mist’s move into the public market is part of a broader strategy to expand its brand portfolio and compete with established industry giants like Amul.
Growth and Expansion
Founded in 1985 as a milk trading company, Milky Mist saw significant growth when it began producing paneer in 1994. Over the years, the company has diversified its offerings to include a wide range of dairy products such as curd, butter, cheese, yogurt, and ice cream. This diversification has allowed Milky Mist to tap into an increasingly affluent consumer base in India. Recent expansions include new product lines such as chocolates and premium ice creams, aimed at capturing a larger share of the market.
IPO Strategy and Market Outlook
Milky Mist’s IPO follows unsuccessful attempts to secure private funding from WestBridge, which had valued the company at Rs 6,000 crore. The IPO is expected to value Milky Mist at approximately Rs 20,000 crore, reflecting the company’s ambitions to accelerate its growth and enhance its market presence. This valuation is based on the company’s robust financial performance and its strategic plans to enter new markets and introduce innovative products.
Funding Approach and Financial Performances
In the absence of private funding, Milky Mist secured a substantial Rs 450 crore bank loan from a consortium including Bank of Maharashtra, Indian Overseas Bank, Union Bank, and RBL. The loan benefits from a 3% interest subvention, effectively reducing the interest rate to 6%. This financial strategy has provided the company with the necessary capital to fund its expansion plans without diluting ownership.
Financial Performance Summary
Milky Mist’s revenue and profit trends over the past few years are as follows:
| Year | Revenue (Rs Crore) | Profit (Rs Crore) |
| FY22 | 1,015 | 32 |
| FY23 | 1,437 | 28 |
| FY24 | 1,950 | 50 |
The company’s revenue growth reflects its successful expansion into new product lines and markets, while profit margins show resilience despite industry challenges.
Also Read- Indian Brand Milky Mist Announces Rs. 2,000 Crore IPO for Expansion and Growth
Market Position and Competitive Landscape
Milky Mist’s IPO strategy is aimed at positioning the company as a strong competitor in the dairy market, particularly against Amul, which dominates the sector. The company is also looking to replicate the success of other listed dairy companies like Hatsun Agro, which trades at a market capitalization of around Rs 25,000 crore. By leveraging its established brand and expanding its product portfolio, Milky Mist aims to capture a larger share of the market.
Future Directions
Looking ahead, Milky Mist plans to further expand its presence into northern and western regions of India. The company’s IPO will not only enhance its visibility but also provide the capital needed to fuel its growth ambitions. With a focus on innovation and market expansion, Milky Mist is positioning itself to challenge established players and achieve significant growth in the coming years.
Milky Mist’s forthcoming IPO represents a significant milestone in its journey from a local dairy company to a major player in the Indian dairy market. The company’s strategic focus on expanding its product range and entering new markets, combined with its robust financial performance, positions it well for future success. As Milky Mist prepares for its public debut, it will be closely watched by investors and industry analysts for its potential to reshape the dairy landscape in India.
