Hatsun Agro Product Ltd (HAP), a leading dairy manufacturer, has announced the acquisition of 100% share capital in Milk Mantra for ₹233 crore ($27.5 million).
The acquisition is aimed at strengthening HAP’s presence in Eastern India’s dairy market, particularly in Odisha, where Milk Mantra’s flagship brand, ‘Milky Moo’, enjoys a strong foothold. The company disclosed the details in a stock exchange filing.
The transaction will be executed through a series of Share Purchase Agreements (SPAs) and other related documents with Milk Mantra’s promoters and shareholders. Once completed, Milk Mantra will become a wholly-owned subsidiary of HAP.
Founded in 2009, Milk Mantra offers a diverse product range, including milk, curd, cottage cheese, buttermilk, and cattle feed. Over the years, it has raised nearly $35 million from investors such as Aavishkaar Capital , Fidelity Growth Partners, Neev Fund, Eight Roads Ventures, and the U.S.-based DFC.
However, the acquisition appears to be a slump sale. Milk Mantra reported an operating revenue of ₹276.42 crore and a profit of ₹9.78 crore in FY24, yet the acquisition cost of ₹233 crore reflects a valuation of less than 1x sales. The company’s revenue has also remained largely stagnant over the past three fiscal years.
In 2021, Milk Mantra had set an ambitious target of reaching ₹1,000 crore in revenue within five years. However, its recent performance suggests this goal may remain elusive.
