In a significant move within the dairy industry, Hatsun Agro Product Limited (HAP), one of India’s leading dairy product manufacturers, has been steadily increasing its stake in Milk Mantra Dairy Private Limited. As of February 11, 2025, HAP has acquired an additional 2,418 equity shares at Rs. 10 each from a shareholder of Milk Mantra Dairy, amounting to a transaction value of Rs. 0.10 Crores. This latest acquisition is part of HAP’s broader strategy to consolidate its position in the dairy sector.
A Strategic Move in the Dairy Industry
HAP’s acquisition spree has been nothing short of impressive. Cumulatively, the company has now purchased 30,92,964 equity shares and 16,06,372 compulsorily convertible preference shares of Milk Mantra Dairy, totaling a staggering investment of Rs. 231.54 Crores. This acquisition represents a whopping 98.40% of Milk Mantra Dairy’s current issued and paid-up equity and preference share capital, effectively giving HAP near-total control of the company.
This strategic move underscores HAP’s ambition to expand its footprint in the dairy market, leveraging Milk Mantra Dairy’s established brand and operational capabilities. Milk Mantra Dairy, known for its innovative product offerings and strong presence in the eastern and northern regions of India, aligns well with HAP’s vision of scaling its operations and diversifying its product portfolio.
A Series of Announcements
HAP has been transparent about its acquisition plans, keeping stakeholders informed through a series of announcements. The company first communicated its intentions on January 27, 2025, followed by updates on January 28, 2025, January 29, 2025, and February 7, 2025. These communications highlighted the progressive steps HAP was taking to secure its stake in Milk Mantra Dairy, reflecting the company’s commitment to transparency and corporate governance.
What This Means for the Dairy Sector
The near-complete acquisition of Milk Mantra Dairy by HAP is a testament to the consolidation trend in the Indian dairy industry. As competition intensifies and consumer demand for high-quality dairy products grows, larger players like HAP are seeking to strengthen their market position through strategic acquisitions. This move not only enhances HAP’s product offerings but also provides Milk Mantra Dairy with the resources and expertise needed to scale its
