Hatsun Agro Product Ltd., the dairy company behind Arokya milk and Arun ice cream, is targeting revenue growth of up to 50% over the next two financial years, supported by expansion beyond southern India, higher milk procurement and investment in its existing infrastructure.
Chairman R.G. Chandramogan told Reuters that the company expects revenue to reach approximately ₹12,000 crore in FY2026–27, compared with around ₹10,000 crore in the previous financial year. For FY2027–28, Hatsun is targeting revenue of ₹14,000 crore to ₹15,000 crore.
The company reported revenue of ₹9,959 crore for the financial year ended March 2026, an increase of approximately 14.5% from the previous year.
Hatsun is expanding its presence beyond its traditional southern Indian markets. It has begun selling milk in Mumbai and Pune and is increasing milk procurement in Odisha as it seeks to strengthen its presence in new markets.
The company currently procures approximately 43 lakh litres of milk per day and aims to increase this to 50 lakh litres per day next year. Its procurement network includes around 13,000 milk collection centres.
To support its expansion, Hatsun plans to invest ₹1,000 crore during FY2026–27. The company had already spent approximately ₹300 crore to ₹400 crore at the time of the Reuters report. Around one-third of the planned investment will be directed towards expanding milk procurement, while the remainder will support manufacturing capacity, marketing and distribution.
Rather than focusing on building new plants, Hatsun is expanding its existing facilities and strengthening its collection network to handle higher volumes.
The growth target comes amid rising procurement costs and intense competition in the dairy sector, both of which are putting pressure on industry margins and limiting producers’ ability to pass on cost increases to consumers.
According to Chandramogan, milk prices have risen by 20% to 22% over the past 15 months, driven by higher milk-fat and animal-feed costs. He expects milk supply to exceed demand within the next eight to ten months.
Despite inflationary pressures, demand has remained resilient in both rural and urban markets, supported by sales of dairy staples such as ice cream and curd, the chairman said.
Hatsun’s expansion plans highlight the importance of procurement scale, distribution reach and efficient use of existing processing capacity as dairy companies pursue growth amid changing market conditions and higher input costs.
Source: Dairynews7x7 13 Oct, 2026 Read full story here
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