Hatsun Agro Product Limited Plans ₹1,000 Crore Capex in FY27
India’s leading private dairy company, Hatsun Agro Product Limited (NSE: HATSUN | BSE: 531531), has unveiled an ambitious expansion strategy for FY27 with a planned capital expenditure (capex) of ₹1,000 crore. The investment will support production capacity expansion, strengthen milk procurement and distribution infrastructure, and accelerate the company’s retail network across India.
The announcement reflects Hatsun Agro’s confidence in the long-term growth of India’s organized dairy sector and its commitment to increasing market share through capacity expansion and product innovation.
₹1,000 Crore Investment to Fuel Growth
The proposed FY27 capex will be utilized across several strategic initiatives, including:
- Expanding the direct milk procurement network.
- Strengthening the distribution and supply chain.
- Upgrading and modernizing production facilities.
- Increasing investments in branding and marketing.
The company aims to improve operational efficiency while meeting rising demand for dairy products across urban and rural markets.
Ambitious Sales Volume Target
Hatsun Agro has set a target of increasing its daily product sales from the current 1.84 crore packs to approximately 2.4 crore packs per day over the next two years.
This significant increase will be supported by capacity expansion, wider market penetration, and an enhanced retail distribution network.
Retail Network to Cross 5,000 Outlets
The company also plans a major retail expansion during FY27.
Currently, Hatsun operates:
- Around 4,100 HAP Daily outlets
- Approximately 220 Ibaco premium ice cream stores
Management intends to expand its retail footprint to more than 5,000 outlets by the end of the financial year, improving product availability and customer reach across the country.
Strong Revenue Growth Momentum
Hatsun Agro reported FY26 revenue of ₹9,959 crore, representing a 14.5% year-on-year growth.
The growth momentum has continued into FY27, with the company reporting approximately 19% growth in the first quarter. If this pace is maintained throughout the year, management expects FY27 revenue to approach ₹12,000 crore, marking another milestone for the dairy major.
Integrated Business Model Supports Margins
The dairy industry continues to face rising input costs, particularly higher milk procurement prices, which increased by approximately 13% year-on-year due to:
- Rising cattle feed costs
- Weather-related challenges
- Higher milk fat prices
Despite these pressures, Hatsun Agro believes its integrated business model provides a competitive advantage.
Unlike many competitors, the company operates through a direct procurement and distribution model, eliminating intermediaries by sourcing milk directly from farmers and distributing products through company-owned and franchise-operated outlets. This structure helps improve operational efficiency and supports healthier margins.
New Product Launches on the Horizon
As part of its growth strategy, Hatsun Agro is preparing to expand its product portfolio.
The company plans to launch:
- A new range of protein-rich beverages within the next one to two months.
- New ice cream variants.
- Additional chocolate products.
These launches are expected to strengthen the company’s presence in high-growth consumer nutrition and value-added dairy segments.