Private Dairies Drive Tamil Nadu’s Milk Boom
By 2023-24, India’s per capita milk availability had reached 471 grams/day, ahead of the global average of 394 grams/day. In the same period, India’s milk production surged by 63.6%, rising from 146.3 million tonnes in 2014-15 to 239.3 million tonnes.
In Tamil Nadu, the dairy sector is also expanding rapidly. The state ranks 11th in milk production, and 4th in cooperative milk procurement within India. Its milk production grew from 8.75 million tonnes in 2020 to 10.8 million tonnes in 2024. The dairy market in Tamil Nadu was valued at ₹1,38,070 crore in 2024 and is projected to reach ₹4,23,700 crore by 2033, growing at a CAGR of 12.61% between 2025 and 2033.
Among private sector players, Hatsun Agro Product Ltd (India’s largest private dairy) reported revenue of ₹8,699 crore in the last year. It currently processes over 40 lakh litres of milk daily and operates across six states. Of its revenues, 56% comes from milk (brand Arokya), 14% from ice creams (brands Arun, Ibaco), and 18% from cultured dairy items (e.g. paneer). The company acquired Odisha-based Milk Mantra in January of the same year for ₹233 crore.
Another major private entity, Milky Mist Dairy Foods Pvt Ltd (based in Erode), recorded revenue of ₹2,349 crore in 2024-25. It has diversified into products including cheese, butter, ghee, yogurt, UHT items, frozen & ready-to-eat foods, and chocolates. Its paneer plant in Erode has a capacity of 150 tonnes/day, which is claimed to be the largest in India. Between April 2022 and March 2025, Milky Mist exported to more than 15 countries, including the US, Singapore, West Asia, and Australia. It also operates 108 exclusive parlours across eight states; six of these are company-owned in Erode. Milky Mist has filed a draft red herring prospectus with SEBI, BSE, and NSE for its proposed IPO.
Other private players from outside Tamil Nadu are also active: Akshayakalpa Organic (based in Tiptur, Karnataka) earns ~ ₹40 crore/month revenue, with ~25% of its monthly revenues coming from Chennai and Hyderabad markets. It currently processes about 2.8 lakh litres/day across its facilities in Karnataka, Tamil Nadu, and a planned plant in Telangana. Its growth (e.g. cluster formation) is slower, since expansion depends on establishing organic farm networks: its Tiptur cluster took 15 years to build ~1,500 farms; the Chengalpet cluster (~80 farms) took 7 years.
In the broader organized dairy context in India, organized sector share in Tamil Nadu is estimated over 35%, while in Uttar Pradesh, although UP has the highest milk production in India, only ~10% of its dairy market is in the organized sector. Among states, Tamil Nadu pays the highest procurement (farmgate) price to farmers.
Source : Dairynews7x7 Oct 7th 2025 Full story here