Dairy manufacturer Hatsun Agro Product Limited (HAP) has announced the full acquisition of Bhubaneshwar-based Milk Mantra for ₹233 crore ($27.5 million).
This move is part of HAP’s strategic effort to expand its presence in Eastern India, particularly in Odisha, where Milk Mantra’s flagship brand, Milky Moo, has established a significant market foothold.
The acquisition, as detailed in a stock exchange filing, will be executed through a series of Share Purchase Agreements (SPAs) and related transaction documents with Milk Mantra’s current promoters and shareholders. Following the acquisition, Milk Mantra will operate as a wholly-owned subsidiary of HAP.
About Milk Mantra
Founded in 2009 by Srikumar Misra and Rashima Misra, Milk Mantra has built a diverse product portfolio, including milk, curd, cottage cheese, buttermilk, and cattle feed.
Over the years, the company has secured nearly $35 million in funding from prominent investors such as Aavishkaar Venture Capital, Fidelity Growth Partners, Neev Fund, Eight Roads Ventures, and US-based DFC.
In FY24, Milk Mantra recorded an operating revenue of ₹276.42 crore and a profit of ₹9.78 crore. However, its revenue growth has remained relatively stagnant over the past three fiscal years, which may have contributed to its slump sale.
The ₹233 crore acquisition price reflects a valuation of less than 1x sales, despite the company’s profitability.
The deal is expected to significantly enhance HAP’s presence in the region, supporting its growth strategy at a reasonable cost. Despite the announcement, the stock market showed minimal movement in HAP’s share price, indicating a neutral response to the acquisition.
While Milk Mantra’s portfolio demonstrates potential, its reliance on liquid milk—a low-margin product—may have limited its profitability and scalability. Analysts suggest that HAP’s expertise and resources could help rejuvenate Milk Mantra’s operations, improve margins, and drive growth in both existing and new markets.
