
CEO K Rathnam outlines a ₹400–500 crore capex plan to expand yoghurts, protein beverages, and pan-India manufacturing hubs.
Tamil Nadu-based dairy enterprise Milky Mist Dairy Food has reaffirmed its commitment to remain exclusively focused on the value-added dairy product (VADP) sector, ruling out any diversification into commoditized liquid milk or non-dairy FMCG categories. In an interview with The Financial Express, CEO K Rathnam detailed the company’s growth roadmap, supported by a planned capital expenditure of ₹400 crore to ₹500 crore over the next 24 to 30 months. The investment program is designed to scale processing capacities, enter northern and western regional markets, and drive annual revenues toward the ₹5,000 crore benchmark by FY28.
The aggressive expansion follows strong financial performance in FY26, where Milky Mist reported annual revenues of ₹3,138 crore—reflecting a 34% year-on-year increase and a 30% five-year compound annual growth rate (CAGR)—alongside a 176% surge in net profit to ₹127 crore. Rathnam noted that surging consumer demand for protein-dense, clean-label dairy formats is driving the business forward. To address this momentum, the company recently deployed ₹40 crore to expand yogurt output from 20 tonnes to 30–35 tonnes per day at its Perundurai mega-plant, aiming to keep pace with demand currently expanding at 50% per annum.
The company’s premium product strategy is highlighted by the expansion of strained and cultured offerings, notably Greek yogurt and Icelandic-style Skyr. Addressing pricing dynamics, Rathnam explained that Milky Mist prices its premium portfolio roughly 5% to 8% above nearest competitors to fund downstream quality safeguards. The company invests heavily in end-to-end refrigerated distribution and provides dedicated visi-coolers to retail partners, ensuring delicate cultured dairy maintains sensory and microbiological integrity through the last mile of India’s retail cold chain.
Geographically, Milky Mist is actively transforming from a southern regional leader into a pan-India brand. While southern states currently generate approximately 70% of total turnover, non-southern territories—including Maharashtra, Gujarat, the National Capital Region (NCR), Punjab, and the North-East—contribute the remaining 30%. To eliminate freight bottlenecks and serve northern and western markets more efficiently, the company has secured industrial land from the Maharashtra Industrial Development Corporation (MIDC) to construct a dedicated processing facility, while actively evaluating operational sites across northern India.
Looking ahead, Milky Mist plans to leverage its farm-level procurement and industrial cheese-whey streams to enter high-growth adjacent categories, with protein-based functional beverages identified as an immediate priority. By avoiding the tight margins and price caps associated with pouch milk distribution, the company protects its gross margins from raw milk commodity swings. Rathnam’s strategic outlook underscores that disciplined specialization in cold-chain-dependent, high-protein dairy foods offers a viable pathway to capture high-margin market share in India’s expanding organized dairy sector.
Source: The Financial Express
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