Founded in Erode, Tamil Nadu, in 1997, Milky Mist has strategically carved a niche in the market by focusing exclusively on premium value-added dairy products (VADPs), rather than traditional liquid milk. Its extensive portfolio includes popular items such as paneer, cheese, yogurt, curd, ice cream, ghee, and butter. This emphasis on processed dairy allows for higher margins, positioning Milky Mist more akin to a fast-moving consumer goods (FMCG) company and reinforcing its strong presence in dairy economics.

The substantial proceeds from the fresh issue component of the IPO are earmarked for key strategic initiatives. Approximately ₹750 crore will be allocated towards the repayment or prepayment of existing debt, bolstering the company’s financial health. Furthermore, ₹414 crore is designated for the expansion and modernization of its primary manufacturing facility in Perundurai, which includes plans for new whey protein concentrate, yogurt, and cream cheese plants. An additional ₹129 crore will be invested in expanding its cold chain logistics network with coolers and freezers, demonstrating a clear vision for dairy industry expansion.

Milky Mist has demonstrated robust financial performance, with its revenue from operations reaching ₹2,349 crore in the financial year 2025 and a notable profit of ₹46 crore. The company operates one of India’s largest paneer production capacities, processing around 1.5 million liters of milk daily, sourced directly from over 67,000 farmers. While its market dominance is concentrated in South India, accounting for over 70% of its revenue, this strong regional foothold provides a solid base for future growth in the competitive Indian dairy market.