Tamil Nadu-based dairy brand Milky Mist is looking at partnerships and expansion of manufacturing footprint for a nationwide presence.
The company, which is preparing for an IPO (at an undisclosed timeframe), is clear that it will “continue to focus on value-added dairy products” said CEO Dr K Rathnam.
“We are not considering selling liquid milk at all. From the inception of the company until now, we haven’t sold milk, and our strategy will remain the same,” he said.
Instead, the brand is focusing on a range of value-added products including yogurts, chocolates and paneer.
“Regarding chocolates, we set up a plant last year, and our products are now available in select outlets. So, we are gradually building that category,” he added. The company is also in the process of expanding capacity at its Coimbatore integrated manufacturing facility to around 2.5 million litres a day, doubling from the current 1.2 million litres.
“For now, we are focused on building the brand and enhancing market penetration after which we will consider setting up additional manufacturing operations,” he added.
The company is also expanding its brand footprint. “Currently, we have over 2,000 distributors across the country, with a strong presence in the South but we are expanding in the West, particularly in Maharashtra, Gujarat, and Rajasthan and we are also visible in Delhi and other parts of the country like the Northeast,” said Rathnam.
On the production side, Milky Mist would focus on value-added products to expand its range, said Rathnam.
Milky Mist has been expanding its range which currently includes essential daily products like curd, butter, cheese, and paneer, as well as indulgence products such as ice cream and on-the-go products like milkshakes and health-oriented products like Greek yogurt and shakes. “We have been consistently expanding our product portfolio over the past two years by introducing new categories within the same product portfolio,” said Rathnam.
Milky Mist is also focusing on exports with its products being shipped to around 20 countries worldwide. “Exports account for about 5% of our top line,” said Rathnam. “Last year, we achieved a turnover of Rs 1,900 crore and this year we expect it to be around Rs 2,400 crore. Exports provide foreign exchange, which helps us offset the cost of importing equipment from Europe and other regions,’ he added.
Right now, Milky Mist is exporting to the Middle East, Singapore, Australia and the US.
“We plan to continue expanding because demand is consistently growing, especially in the GCC countries, so we aim at increasing our presence there, as well as in other international markets,” said Rathnam.
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