Milky Mist’s IPO plan aims to boost its product portfolio and expand its market reach. The company, which began as a milk trading entity in 1985 and moved forward into paneer production in 1994, has steadily expanded into various better-quality products such as cheese, ice cream, yogurt, curd, and butter. This upcoming IPO will support the company’s plans to introduce new products, such as ice cream and chocolate, while stepping into new markets.
In the past year, several leading investment and merchant banks, including HDFC, Kotak, 360 One, Axis, and Nuvama, have shown interest in taking Milky Mist public. Despite prior challenges in raising private capital, Milky Mist is now firmly committed to an IPO, as confirmed by CEO K. Rathnam.
Milky Mist’s journey to secure private capital has faced hurdles, with negotiations falling through at crucial stages due to the founder’s reluctance to cede control. At the same time, the company secured a Rs 450 crore loan from a bunch of banks, including Indian Overseas Bank, Bank of Maharashtra, RBL, and Union Bank, said the source who worked for the company in the past. The loan, supported by an interest subvention from the Center’s department of animal husbandry and dairying, provided favorable interest rates for the company’s expansion plans.
Milky Mist has demonstrated robust financial growth, with revenues rising from Rs 1,015 crore in FY22 to Rs 1,437 crore in FY23 and further to Rs 1,950 crore in FY24. However, its profit margins have fluctuated, with a decrease in FY23 and then a recovery in FY24, with a profit of Rs 50 crore as per K Rathnam.
As Milky Mist prepares for its IPO, it aims to position itself alongside industry giants like Hatsun Agro, with a market capitalization goal of Rs 20,000-25,000 crore said by source. With plans to extend its footprint into western and northern regions, Milky Mist is set to challenge Amul’s dominance in the dairy sector. The IPO, anticipated by 2026, will enhance the company’s market presence and visibility, paving the way for sustained growth and market expansion
