New Delhi: India was the highest milk producer in the world in the year 2021-2022, contributing to 24% of the world’s milk production, according to the data from Food and Agriculture Organization Corporate Statistical Database (FAOSTAT). During the same period, Rajasthan emerged as the highest milk-producing state in the country, contributing to 15.05% of the total milk production, AS per media reports. Here is the list of the top 5 highest milk-producing companies or cooperatives in India mentioned as per their per-day procurement capacity.

1. Amul (Gujarat Cooperative Milk Marketing Federation Ltd)

With a daily milk procurement of 26.3 million litres, Amul or Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF) is India’s biggest milk producer. Amul had a turnover of $ 6.2 billion (Rs 50,000 crore) in 2021-22 which further grew to over $  8.8 billion (Rs 72,000 crore) in the year 2022-2023, as per media reports.

The apex organization has 18 member unions attached to it and it procures milk from 18,600 village milk cooperative societies and 3.64 million milk producer members from 33 districts of Gujarat, according to its website.

GCMMF is the largest exporter of dairy products from India, distributing to 25 different countries. Amul has 26 categories of products including Amul butter, Amul curd, Amul cheese, Amul ghee, Amul beverages and many others.

2. Nandini (Karnataka Milk Federation)

Nandini was founded in 1974 by the government of Karnataka as Karnataka Dairy Development Corporation (KDDC). It had a turnover of $ 2.4 billion (Rs 19,800 crore) in 2021-22 which increased to over $ 3 billion (Rs 24,500 crore) in 2022-23 as per media reports. KDDC markets milk and milk products. Nandini procured over 7.8 million litres of milk per day in 2022 as per recent media reports. Nandini had income from operations of $ 600 million (Rs 4,900 crore) in the year 2021-22 as per media reports.

3. Mother Dairy (National Dairy Development Board)

Incorporated in 1974 Mother Dairy is a wholly-owned subsidiary of the National Dairy Development Board (NDDB). According to Outlook India, Mother Dairy has a daily processing capacity of over 5 million litres of milk per day. Mother Dairy products are available in 100 cities across the country. It markets 3.2 million litres of milk in Delhi, Mumbai, Saurashtra and Hyderabad daily. It also manufactures and markets a wide range of dairy products, most of which are available across the country.

Mother Dairy markets through 1,400 retail stores and 1,000 exclusive stores across India. It had a revenue of over $ 1.5 billion (Rs 12,500 crore) in 2021-22.

4. Dudhsagar Dairy (Mehsana District Cooperative Milk Producers Union Ltd.)

Dudhsagar was incorporated in 1963 in Gujarat India in the Mehsana district. Dudhsagar had a revenue of $ 737 million (Rs 6,028 crore) in the year 2021-22 as per Dairy Newsindia. It had peak milk procurement of 4.5 million litres in the year 2021-22. The products of Dudhsagar are marketed under the brand name Amul / Sagar / Dudhsagar in national and international markets.

5. MILMA (Kerala Co-operative Milk Marketing Federation)

Milma was incorporated in 1980 by the government of Kerala as back in the day, Kerala was dependent on other states for its milk requirement. As per media reports, Milma procured over 1.5 million litres of milk per day in the year 2021-22 and generated a revenue of $ 524 million (Rs 4,300 crore). It markets a wide range of milk and milk products. Milma passes 83% of its revenue to the farmers due to which farmers in Kerala get the highest rate of milk per litre.

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This end-to-end procurement solution, being launched in Karnataka, Andhra Pradesh, Tamil Nadu, and Kerala, not only guarantees superior milk standards but also relieves businesses from the complexities of managing procurement, allowing them to focus on their core operations while benefiting from streamlined sourcing.

MilkLane will provide this service on a flexible model where B2B customers would have multiple options based on their needs. MilkLane would handle all aspects of procurement at competitive prices, while B2B customers can choose to deploy their own capex or opt for rental equipment provided by MilkLane. With no need for an extensive on-ground procurement team, businesses can save costs, and the ownership of the procured milk fully resides with them. Additionally, MilkLane would charge only for the procurement-related overhead costs. The customers would also have the choice to operate on either a cost-plus or a fixed-price model, that would be reviewed periodically, to ensure transparency and efficiency at every step.

As per industry data, the dairy industry in India was over INR 16,000 billion as of 2023. The market is projected to reach around INR 50,000 billion by 2032, exhibiting a CAGR of 12.88% during 2023-2032.

MilkLane would be driving the procurement services basis its extensive network of over 10,000 small farmers, digitally enabled infrastructure facilitated through more than 150 Bulk Milk Coolers (BMCs), and milk processing facility with a capacity of 2 lakh litres per day. These BMCs are strategically located and ensure milk is cooled within 45 minutes of milking. MilkLane’s quality assurance process with four levels of checks and over 40 tests conducted in central labs will ensure the highest standards of safety and quality. Additionally, MilkLane would offer 100% end-to-end traceability and a fully digitized transparent pricing model aligned with market price movements.

Avinash Kasinathan, Head of India Business at Innoterra, emphasized the critical need for stringent quality control in dairy supply chains. He noted that rising demand for safe, high-quality milk highlights the challenges of inconsistent fat levels, antibiotic contamination, and aflatoxins, which threaten product quality and consumer safety. MilkLane’s new procurement service addresses these issues by enforcing rigorous quality measures from sourcing to delivery. With a robust farmer network and advanced technology, MilkLane aims to be the trusted partner for businesses seeking reliable milk supply.

To further enhance quality, MilkLane employs a Quality-Driven Pricing model that prevents dilution and adulteration, stringent acceptance standards for milk testing, and advanced testing capabilities. The company also emphasizes on the nutritional excellence of the cattle, risk mitigation through quality management processes, and farmer empowerment through training and extension services.

In addition to its focus on quality, MilkLane is also committed to environmental sustainability and farmer-specific initiatives. The company has replaced plastic with 5,000 stainless steel cans for milk collection, further enhancing its commitment to delivering pure and safe dairy products.

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Despite a 4% surge in India’s milk production, amounting to a total of 230.58 million tonnes in 2022-23, the dairy industry has been unable to prevent a price hike. Previously, Amul had raised its milk product prices, and now Mother Dairy, another dairy giant, has followed suit.

In the Delhi-NCR region, the new prices for Mother Dairy’s products are as follows:

• Full cream milk: Rs 68 per litre
• Toned milk: Rs 56 per litre
• Double-toned milk: Rs 50 per litre
• Buffalo milk: Rs 72 per litre
• Cow milk: Rs 58 per litre
• Token milk: Rs 54 per litre

This price hike is intended to strike a balance between the interests of milk producers and consumers, according to the company.

The dairy industry in India reached a size of INR 16,792.1 Billion in 2023, according to IMARC. It is projected to grow to INR 49,953.5 Billion by 2032, exhibiting a Compound Annual Growth Rate (CAGR) of 13% during 2024-2032. The industry is witnessing robust growth, driven by technological innovation, enhanced retail and e-commerce platforms, and improved cold chain infrastructure, which are meeting the rising consumer demand with a diversified and quality-focused product range.

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Devendra Shah, Chairman of Parag Milk Foods Ltd, expressed his pleasure at the company’s performance, highlighting the milestone of crossing INR 3,000 crore in consolidated revenues. The profit after tax stood at INR 91 crore, complemented by healthy operating cash flows. Shah noted that while milk procurement prices have been favorable, the company is prepared to maintain and improve its margin profile despite potential price increases.

The company’s growth has been bolstered by its strategic investments in modern trade and e-commerce channels, which have significantly contributed to overall revenue. The expansion of the value-added product portfolio and premiumization efforts have also enhanced the gross margin profile. Advertising and promotion expenses increased to 4.2% of revenue in FY24 from 2.5% in FY23, reflecting the company’s commitment to brand building.

In terms of core categories, Ghee and Cheese have seen continuous traction throughout the year and have posted a growth of 3.5 % YoY. The company’s in-house consumer brand ‘Avvatar’ is consistently growing at 100% CAGR for two years in a row. 

In addition to it, the General Trade, Modern trade & e-commerce posted a growth of 3% YoY, and 6% YoY, respectively for FY 24. Moreover, the average milk procurement of the company stood at 16 lakh liters per day; the average milk price stood at INR 33.8 per liter.

Parag Milk Foods’ premium brand ‘Pride of Cows’ continues to perform well, expanding its product portfolio and distribution footprint across seven cities. The Company is also expanding its Bhagyalakshmi Dairy Farm, a 100% subsidiary dairy farm that supplies exclusively to the Pride of Cows brand.

The Company has strengthened its brand equity reach by adopting impact marketing campaigns like participation in ‘Kaun Banega Crorepati’ (KBC), which enables the company to widen its reach in tier 2 and tier 3 towns and cities through brand messaging ‘Garv Se Gowardhan.’ The company’s brand ‘Go Cheese’ has also participated in shows like India’s Got Talent and has undertaken very focused print marketing.

Apart from this, some of the new developments in the company are: 

Entered into the Sweets category under the brand Gowardhan: The Company has forayed into the traditional sweet segment under the brand ‘Gowardhan’. Currently, the brand has seven delectable sweet ranges namely Kaju Katli, Malai Pedha, Kesar Pedha, Kaju Pista Roll, Mawa Gujiya, Mysore Pak, and Malai Modak. With an estimated branded market size of INR 7000-8000 crore, the Indian sweets market presents vast opportunities for growth and innovation.

Expansion in the International market: The company plans to incorporate a n wholly-owned subsidiary in Dubai, UAE. This strategic move aims to enhance the company’s global reach and streamline its supply chain operations

‘‘We would continue to enhance our industry-leading R&D capabilities and infrastructure to drive innovation and delight our consumers across the globe. With strong foundation in place, we are confident of posting industry leading growth and profitability ahead.” says Shah.

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Established in 1916, the Michigan Milk Producers Association is a cooperative organization aimed at launching fresh milk in America. Through this partnership, MMPA will handle the milk collection and processing according to Amul’s renowned recipe, while Amul will oversee the marketing and branding aspects in the US market.

Speaking at the event, Dr. Jayen Mehta, Managing Director, Amul, said, ‘’We are honoured and pleased to enter into an association with MMPA, a respected 108-year-old dairy cooperative. This association will ensure that all our American and Indian consumers will be nourished and energized with the goodness of Amul Milk.’’

This is the first time that Amul’s fresh milk range is being launched anywhere outside India, in alignment with the vision of Prime Minister Narendra Modi to make Amul a global dairy brand.

Amul will be launching the range of fresh milk in one-gallon and half-gallon packs under the same brand name and composition that is popular in India viz. Amul Gold – 6% milk fat, Amul Shakti -4.5% milk fat, Amul Taaza- 3% milk fat, and Amul Slim n Trim milk with 2% milk fat. The products will be available in the leading Indian grocery stores throughout the East Coast and Midwest markets of the US.

Amul’s partnership with Michigan-based MMPA is a continuation of the brand’s ties with Michigan and showcases the overall success of India’s dairy industry.

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There were plenty entrepreneurial choices before them but they chose to turn the dial on the meat retailing business. Laying out the rationale and logic behind their business choice, Karthik explains, “With our experience and by dint of our international travels to many countries across the world, we saw that the fish and meat category in India was the least disrupted and also the most fragmented. Although other categories like fruits and vegetables, grocery, dairy, apparel and everything else had improved and offered a far better shopping experience, meat as a category was a laggard, stuck in an antiquated tradition with large pockets of bygone era-signs still seen hanging around.”

They looked at various models and were able to draw on the emerging market trends from European countries.

Catching Their Business Oyster

Until five years ago, when ChopServe first entered the market, meat lovers trudged to greasy, corner butcher shops or endured the bedlam of local fish markets. While these grubby places offered an affordable price point, hygiene stuck out like a sore thumb and the product quality was often tacky and under suspicion. Another option for the consumer was to visit a supermarket with a meat and seafood section. But finding one in your vicinity mostly proved to be a futile and time-sucking endeavor and also there was limited availability and product selection.

Also, buying from online meat retailing platforms meant reconciling to the fact that the catch or meat was processed and packed at some distant distribution center, which meant that customers were largely deprived of the perks of freshness and product customization.

Convinced that the otherwise rancid market scenario was gasping for fresh air, ChopServe under its legal name –DaysCatch Retail Technologies Private Limited – pulled in its oars to launch operations from Bengaluru with an avowed mission to rewire the nation’s purchasing habits for meat products.

The journey’s early twists and turns

The ChopServe business journey began with fish and seafood supply to a B2B customer base comprising supermarkets and online meat retailers. However, despite familiarizing themselves with the complexities of the business and paying close attention to the details, ChopServe’s supplies faced numerous rejections.

As handling the rejections became problematic, Karthik and his team realized it was time to strategise anew. Like agile start-up leaders who move swiftly and embrace change, the three business collaborators began re-assessing the market conditions and worked toward creating the necessary space to make their budding business thrive.

“We explored alternative models that could work out for us, and came to the realization that we needed to directly reach out to the end-customers in order to build a viable business model,” reflects Karthik.

Negotiating a Business ‘U’ Turn

However, implementing the new consumer-facing strategy came with its own unique set of challenges. “Something very unique to India is that the market consists of almost 100% fresh fish and meat consumption. While other countries have a mix of frozen options, in India it’s completely fresh. When we looked at this market, we realized that people primarily buy raw meat and fish to cook at home. Additionally, every home has its own culinary tradition and ways of preparing the dishes. In such a diverse culinary landscape, customization becomes a crucial factor,” notes Karthik.

He further adds “The challenges revolved around delivering high-quality fresh produce in a personalized and easily accessible manner for the customer to come, see, and buy. Customers want to witness the freshness, abundance, and variety first hand. This meant that we needed to bring customization as close as possible to the customers. Therefore, we decided to adopt an omni-channel approach right from day one, allowing us to showcase our entire range of products across channels.”

After extensive research on the ground realities of the market, the three founders realized that omni-channel strategy was the key to establishing a lasting retail channel in the category.  After extensive debates and discussions, they realized that they needed a brick-and-mortar store supported by robust technology for online ordering and delivery.

Winning Model for a Modern Retail Outlet

ChopServe’s first store, spanning 1050 sq. ft., opened in May 2018 in Bengaluru’s start-up hub of  Koramangala. The Koramangala store started off strong, adhering to the prescribed norms of an innovative and forward thinking fish and meat retail business. Equipped with the right technology, the store implemented robust systems and reliable processes for managing the supply chain, inventory, sourcing fresh and high-quality products, facilitating easy ordering and purchasing, and establishing efficient billing and payment methods.

Once the store was operational, its omni-channel capabilities helped establish its modern retail identity and reach a wide customer base. The store featured a live processing section for fish and meat, allowing customers to have their requirements customized on the spot while ensuring product quality.

With its selection of fresh, marinated, and grilled fish, meat, and seafood in various cuts and choices, all provided in an impeccable hygienic environment, the store began attracting a large number of consumers seeking alternatives to the standard offerings available at butcher shops and supermarkets.

The success of the Koramangala store propelled ChopServe into the meat retailing game and marked a turning point for the brand, signaling its readiness for greater achievements. Presently, ChopServe operates approximately 94 stores across major cities in southern India, including over 20 stores in Dubai.

The brand has 70+ stores in Chennai, Bengaluru, Hyderabad, Cochin, Trivandrum, Madurai, Kollam, Coimbatore, and Goa are propelling the company’s growth trajectory. Additionally, ChopServe has partnered with major supermarkets in various southern cities and exports its products to several countries in the Middle East and other overseas markets.

As a company on its way to making kinetic commercial growth, money lies at the heart of the business and ChopServe is taking a measured and healthy approach to managing its cash flow. Right from day one, the company has been super wired on maintaining positive cash flows, expanding slowly in the first three years, not willing to burn through cash. By keeping a focused edge on profitability, it has been able to conserve cash to power its current pace of growth.

The Way Forward

The company’s success has opened doors for further opportunities, both domestically and internationally. While maintaining a focus on south India, ChopServe is also looking to expand into other regions of the country, such as eastern, western, and northern India.

Additionally, it is exploring opportunities in the Middle East, with its entry into Dubai serving as a test run for the broader Gulf Cooperation Council (GCC) market. ChopServe’s expansion plans require significant capital investment, prompting the company to seek funding and engage with investors. Details regarding further fundraising efforts are currently not disclosed due to the silent period being observed by the company.

Moving forward, ChopServe will stay committed to its core principles, aiming to build a profitable business that benefits employees, customers, and investors.  The company is focused on improving the baseline of the meat-buying shopping experience for consumers and is on the right trajectory for future growth.

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The company transports its products across the length and breadth of India, from Kashmir to Kanyakumari. Milky Mist’s key markets lie across the entire southern region of India such as Tamil Nadu, Kerala, Andhra Pradesh, Telangana, Karnataka, and Goa which contribute about 65% of the company’s topline.  The company also has its brand footprint in the Northeast, East India, West India, and in Delhi-NCR in the North. It also exports its products to countries like Sri Lanka, Maldives, Singapore, the Middle East, Bhutan, and Australia.

Clocking Rs. 1,500 crore in turnover for FY22-23, which is expected to reach Rs. 2,200 crore this fiscal, Milky Mist today is among the leading dairy brands in India and when it comes to the dairy industry in south India, it sits right atop the higher ridges of Mount Olympus.

On the grand gradient of corporate journeys, dairy firm Milky Mist’s ride to the top league of India’s dairy industry is as gripping as it can get. Kumar’s father ran a milk business, which was struggling to stay afloat. But before the wheels could come off, Kumar had to step in to bring the business back on tracks. Even as a school dropout, he was able to read the dairy business like a mineralogist would read a rock. From a generic milk supply business, Kumar poured his mind, body and soul into transforming it into a dairy brand and named it Milky Mist

People can accomplish some wildly successful things, given enough determination, skill, and rocket fuel. Once he took over the business, Kumar worked infernally hard to take his small fledgling brand that started out selling paneer and turned it into a leading dairy brand of India. Milky Mist has become the punchline to what a good dairy business is – the company has earned its spurs for its rich diversity of value-added dairy products and their excellent quality and freshness.

A diverse product expanse

Milky Mist is perhaps the only dairy company in the private sector to have a diversified portfolio of valueadded dairy products. Its product expanse covers the whole range – all the way from breakfast to the dinner table, taking care of all the dairy needs of consumers

 “We don’t market liquid milk but we offer the whole range of value-added milk and dairy products. Our USP is that we are the only 100% value-added milk and dairy products manufacturing company in the region with products available across all the dairy categories and across a wide range of SKUs and pack sizes,” says K Rathnam, CEO, Milky Mist, who has been a former MD of Amul Dairy.

Dairy products can be broadly categorized into three product-types: Basic dairy products like ghee, butter, curd, and paneer; Nutritional products like cheese and yogurt; Indulgence products like milkshake and ice-cream. To be a successful dairy company in India, one should be present in all the three dairy product categories and have a large product portfolio.

The brand has over 150 SKUs of Milky Mist products across 20+ categories. This extensive range ensures that the products cater to various consumer preferences and customers have access to a wide selection of dairy products under one brand.

A foolproof procurement system

Retail mavens love to remind that in the Indian dairy sector, unless you have your own procurement, it is impossible to build a sustainable business. The milk business is successful only when one has command over procurement. One needs to command procurement not just in terms of rate but also quality. One has to build a relationship with your farmer so that one can control the milk you procure. Only then one gets economies of scale and can launch better product.

Milk being the essential ingredient in all dairy products, it is the quality of milk and how it is procured that determines the qualitative advantage of the end product. But setting up a milk procurement operation at a gargantuan scale is time and effort intensive and poses serious challenges. Milky Mist, however, has cut through this Gordian knot in its own ingenious way. The company has developed a unique, transparent, and robust milk procurement system to procure the best quality raw milk available.

“If your brand reputation is built on supplying best-quality products, you need to create systems and ensure that some things are always in place,” says Rathnam. The company follows best-in-theindustry practices to ensure the procurement of best quality milk. It has a procurement system under which it collects and buys all its milk directly from the farmers, completely weeding out the role of milk vendors and middlemen. Also, the payment for the milk bought directly into the hands of farmers, thus ensuring that there is nobody else in its milk supply chain.

As Milky Mist collects milk directly from its farmer-members without any agents involved in the procurement process, the quality of milk remains intact as every drop of milk is tested at the collection centers, thus leaving no room for quality deviation to take place. “Our method of direct sourcing of milk from farmers ensures that farmers remain loyal to us and give us pure unadulterated milk,” says Rathnam.

Milky Mist has some 75,000 farmers in its network for milk procurement and sourcing. It procures about 8 lakh liters of milk every day and is on track to source 1 million liters of milk per day in the near future. Interestingly, all of the milk is sourced from within a 100-200 km radius.

The sheer magnitude and scale of Milky Mist’s milk procurement has spawned a mini-white revolution in places like Erode, Salem, Tiruppur, Coimbatore, Namakkal, Dindigul, Dharmapuri, Jolarpet, Krishnagiri, Trichy, and more. Farmers bring their milk to Milky Mist’s automated collection centers located at these places and in the neighborhood villages, where milk is analyzed for quality. As the commission to middlemen has been eliminated, farmers also get to earn Rs.5 more per liter, which acts as an incentive to stay plugged into Milky Mist’s procurement system.

Apart from direct sourcing, chilling the milk at the source and transporting it to the processing plant is another crucial element in the milk supply chain. As a quality product dairy manufacturer, Milky Mist recognizes the critical importance of milk preservation at its source. The company has set up its chilling centers close to its milk collection centers. “We have set up our bulk milk chilling units of 2,000-3,000 liter capacity at the village level itself so as to reduce the travel and transportation time of milk and to ensure that milk temperature at 4-5 degree Celsius degree is maintained, which helps to preserve its quality,” says Rathnam.

Another focus area for the company is the health management of cows. After all, good quality milk can only come from cows that are healthy. Milky Mist partners and collaborates with its 75,000 farmer-members by offering them the necessary support and guidance on animal health management, feed quality, and milking practices. Thus, apart from compensating them fairly, Milky Mist also provides high-quality cattle feed to the farmers, thus ensuring the quality of milk from its roots. . At the same time, by having constant interaction with farmers and through regular check-up of animals, the company help them with fertility improvement of their cows, which ensures that the milk yield keeps improving and farmers get to earn more money from their existing livestock.

Technology in place to take care of product quality

Milky Mist’s technology initiatives reside in many different pockets of the business, but the company has ensured that all its tech platforms are fully integrated with each other, thereby achieving an overall compound impact.

Thanks to its unwavering belief in pushing the quality of dairy products in India, Milky Mist has made impressive investments in bringing best-in-class manufacturing technology to India. For instance, it is one of the few dairy companies in the country to have a Rs.600 crore fully automated robotic manufacturing unit for paneer and cheese. The high level of automation ensures that the entire manufacturing and processing is completely handsfree and there is no direct human contact involved at any point in the manufacturing, processing and packaging of its products.

Milky Mist has built its quality assurance system in such a way so as to take care of food safety and food hygiene aspects while keeping in mind the interests of the consumers at every level.

The company also has its in-house design team to look at the evolving packaging requirements for different product categories. The team has created some excellent designs that are very minimalistic but are appealing and attractive while keeping the products safe and hygienic.

Milky Mist operates its own transport fleet and logistics, which ensure that products are shipped at a temperature that is marked on the product label and the goods reach customers in a pristine state. Besides, Milky Mist also provides chiller units and visi-coolers to retailers to ensure proper cooling of the products and to ensure that they are kept properly refrigerated at the retail points. A fully digitalized soup to nuts digital infrastructure supply chain allows Milky Mist to implement traceability systems that help to track the origin of milk and monitor its journey through the supply chain.

“Digitalization of the supply chain helps us to detect and correct any deviations from the standard protocol and other erratic processes that may arise during the operations. We can track the movement of our products, find out the locations that our trucks are headed for, and monitor many other operational details” points out Rathnam, adding that the company has its own tech solutions department to develop the software and solutions based on its operational needs.

With some 200 vehicles under its wings, the company transports its products across the length and breadth of India, from Kashmir to Kanyakumari. Milky Mist’s key markets lie across the entire southern region of India – Tamil Nadu, Kerala, Andhra Pradesh, Telangana, Karnataka, and Goa – which contribute about 65% of the company’s topline. The company also has its brand footprint in the Northeast, East India, West India, and in Delhi-NCR in the North. The company also exports its products to countries like Sri Lanka, Maldives, Singapore, the Middle East, Bhutan, and Australia

Well-oiled sales and retail operations

With more than 2,500 distributors across India under its fold and with 1,200 employees on its payroll, Milky Mist is focused on strengthening and improving its sales and distribution network to ensure their products reach a wide consumer base spread across over 1,50,000 retail points across the country.An automated sales system generates valuable data that can be used for analysis and decision-making. By tracking sales performance, customer behavior, and market trends, Milky Mist is able to gain business insights, identify patterns, and make informed decisions to drive growth and optimize their sales strategies.

On the retail front, Milky Mist operates across five different trade channels – General Trade, Modern Trade, E-commerce, HoReCa, and B2B. HoReCa is the next big trade channel for Milky Mist products and the company services this market with its regular offerings. “It is our second-biggest trade category after GT and we see a lot of traction for our products in this channel,” says Rathnam

As for Modern Trade, Milky Mist has been ramping up its presence in this trade channel and its share of Modern Trade has been growing consistently year on year thanks to its partnership initiatives with both national and regional retailers. . Milky Mist is a national partner with Reliance Retail and D-Mart and it also continues to work closely with other national and regional retailers as well.

At the same time, Milky Mist has taken a major digital initiative by launching its online store. Cutomers can now shop for products online by ordering its mobile online delivery app. The Milky Mist App currently services cities like Chennai, Kochi, Trivandrum and Thiruvalla and plans are afoot to launch the online delivery service in other places very soon. Milky Mist products are also available with leading online marketplaces like Flipkart and Amazon.

Recently, Milky Mist has taken another major step to enhance its brand’s experience by launching its retail parlours. Apart from the one at the company’s ground zero in Erode, Milky Mist parlours, measuring 200 to 400 sq.ft., have come in Tamil Nadu in places like Udumalpet, Ellispettai, Chithode, Kavindapadi, and Trivandrum, Thiruvalla, Kothamangalam, and Cochin in Kerala. The parlours stock all Milky Mist products which customers can buy and they also have a live kitchen where customers can dine, savor, and experience exciting dishes made with Milky Mist products, which are rustled up by trained chefs. Through these parlours that are part shop and part café cum eatery, Milky Mist is able to showcase its full product range in a controlled environment.

Though our focus as of now is not to get into retailing, we have opened these stores with the purpose of being able to interact better with our customers, understand their needs, gather feedback, and build stronger relationships,” says Rathnam. To expand its network of Milky Mist parlours, Milky Mist has embarked upon the franchise route.

Sustainable operations

It’s hard to draw a better poster boy for long-haul sustainable practices in the dairy industry other than Milky Mist, which is among the pioneering dairy companies in India that does not use grid energy, is power surplus and energy-neutral, recycles the water it consumes, and is on track to becoming a 100% water-neutral dairy company in India.

Until about two years ago, the company operated its own water recycling plant, a 2 MW wind mill and a 4 MV solar plant that together generate about 5 megawatts of power per day. Milky Mist commissioned another solar plant last year with an outlay of Rs. 40 crore, and a 7 MW capacity, demonstrating its steadfast commitment to promote renewable green energy.

The company expects the new plant to reduce 30,000 tonnes of carbon emissions every year, helping it to inch closer to its goal of becoming 100% carbon-neutral in the not too distant future. In fact, Milky Mist is the first FMCG company in India to become power surplus and energy neutral by meeting its energy consumption from renewable energy sources.‘‘For the past year and a half we have remained power surplus and our aim is to remain power surplus and energyneutral for years to come,” says Rathnam.

Another major breakthrough in the company’s sustainability operations and a first-of-its-kind achievement by any dairy company in India, Milky Mist has also become water-neutral of late. Becoming waterneutral involves minimizing a company’s impact on freshwater resources and ensuring sustainable water management. By turning water-neutral, Milky Mist has been able to balance its water usage by implementing strategies to reduce water consumption and actively replenishing or conserving water resources.

Milky Mist is also involved in water rejuvenation projects in a big way and has so far done 170 such projects, mostly in the Cauvery delta stretch. These projects involve the desilting of small rivers, canals, lakes and ponds as well as the planting of trees to improve the water holding capacity of these water bodies. The company has planted close to 4 lakh trees so far. “We provide a large number of tree saplings to our farmers for planting in their fields. We take care not to send out any waste from our effluent-treatment plants. Instead, we generate gas from the waste, which is converted into energy to run our plants. This way, we are converting our energy and water consumption into a virtuous recyclable process, and it has become a hallmark of our sustainability and environmental mission to become eco-friendly and self-sufficient,” avers Rathnam adding that having turned both water and power neutral currently, it is now striving to become carbon-neutral in the years ahead.

“We are exploring to replace some of transportation cargo with electric vehicles and encouraging our distributors to go for EVs, which can distribute our products within a 30-40 km radius and come back to their stations,” says Rathnam, once again, exemplifying the company’s commitment to support clean energy production and sustainable practices in a big way and part of green energy portfolio augmentation.

Future Plans

In the past 3 years, Milky Mist has been clocking a CAGR of 32%, with it topline growth last year touching 42% Y-o-Y. For the fiscal year 22-23, the company’s turnover came at Rs. 1,500 crore and it expects to earn Rs. 2,200 crore this fiscal year. “We expect the growth momentum from last year to continue for fiscal 23-24 as well,” say Rathnam.

The company recently set up a new unit worth about Rs. 600 crore, which comes equipped with the latest UHT technology to manufacture different categories of UHT products. Milky Mist is also on way to launch its icecream and chocolate manufacturing plants besides also working on opening a sweetened condensed milk plant. While the new UHT unit is already operating commercially, Milky Mist recently soft-launched its ice-cream plant and it is looking to build its ice-cream category very strongly. It plans to launch its chocolate manufacturing plant and its sweetened condensed milk plant very soon. It is also open to making fresh investments in ramping up its plants’ capacity further.

This year the company has launched premium and exotic variants of ice-cream under Milky Mist Brand on the occasion of Tamil New Year coinciding with Vishu, Baisakhi and Bihu. . “The state-of-the-art automatic plant has the capacity of 200,000 litres ice-cream per day of hundreds of different variants,” says Rathnam. Milky Mist also plans launching a new category of RTE products like Paneer Tikka, Paneer Crunchy, and more which will be launched in the future.

Speaking of the new Milky Mist products slated to make the market debut soon, Rathnam mentions traditional Indian sweets, ready to eat / cook category products. The company has set its sights on the evolving dairy market and product range in keeping with the emerging dynamic demands and trends.

The entire range of Milky Mist Dairy products is available across top F&G retailers such across India. Other than the leading groceries, Milky Mist Dairy products have a network of prestigious foodservice and institutional clients like Taj Group of Hotels, ITC Group of Hotels, Le Meridien, Residency, Lalit Ashoka, Leela Palace, Grand Chola, TAJ Flight Kitchen (Madras) Ltd., Sky Gourmets P. Ltd., MTR, CRPF Canteen in Chennai, and military-run department stores, to name of few. The company enjoys a strong foothold in the whole of south India.

Going ahead, the company wants to become a truly pan-India dairy player. It has plans to push its footprints further into its existing overseas markets like the Middle East, Sri Lanka, Singapore and Australia and also look for fresh newer frontiers and opportunities.

Conclusion

India’s dairy industry is growing very steadily and the growth in the value-added segment has been around 15-20% annually depending on the product category. Indian consumers are looking for good quality differentiated products and the overall demand for dairy products is growing stronger, which betokens a bright future for the industry ahead with no signs or semblance of any slowdown over the next 5-7 years. “The bread is big enough for everybody to get a bit and there is plenty of room for all dairy players to grow their market share and customer base,” says Rathnam. But what goes untold is that those like Misty Milk, which have good products, technology and service at their command, have better prospects for their dairy business.

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