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Hatsun Agro targets up to 50% revenue growth over two years, with expansion into Mumbai and Pune
Our read
Hatsun Agro Product will more likely than not reach its ₹120 billion revenue target this year, while the Mumbai and Pune push decides whether next year lands at ₹140 billion or ₹150 billion.
For operators
Hatsun Agro plans to lift daily milk procurement from 4.3 million to 5 million litres and enter Mumbai, Pune and Odisha, so expect tougher shelf and farm-sourcing competition in those markets.
Watch
Daily milk procurement past 4.3 million litres by this financial year-end would mean the ₹120 billion plan has milk behind it and rivals face tighter sourcing.
Ask next
What else has Hatsun Agro Product done in the last three months?The report,
Hatsun Agro expects revenue to rise as much as 50% over the next two financial years, reaching about 120 billion rupees this year. It plans to invest 10 billion rupees and expand into Mumbai, Pune and Odisha procurement.
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Reported figures
From the report. Source details below
| Revenue forecast for following year: | 140 billion rupees to 150 billion rupees |
|---|---|
| Revenue last year: | 100 billion rupees |
| Daily milk procurement target next year: | 5 million litres |
| Current daily milk procurement: | 4.3 million litres |
| Milk price rise over past 15 months: | 20%-22% |
What to watch next
- Quarterly revenue run-rate against the ₹120 billion full-year target
- Announcement of a plant, depot or distributor tie-up in Mumbai or Pune
- Capex disclosures showing how much of the ₹10 billion is spent and where
- Price or promotion moves by rival dairies in Maharashtra after Hatsun's launch
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- Hatsun Agro Product is likely to commit most of its ₹10 billion investment to processing and chilling capacity that supports the move into Mumbai and Pune.
- Expect Hatsun Agro Product to widen its farmer collection network, including in Odisha, to lift daily procurement from 4.3 million toward 5 million litres.
- Established dairies in Maharashtra may respond to Hatsun's entry with promotions and tighter retailer terms in Mumbai and Pune.
- Hatsun Agro Product is likely to lean on value-added products rather than plain milk to defend margins in the new markets.
- Analysts and lenders will probably track whether ₹120 billion this year is on course before crediting the ₹140 billion to ₹150 billion target.