Hatsun Agro Product (HAP), India’s largest private sector dairy company has planned investments of around ₹1,000 crore in FY27.
In an interview with businessline, RG Chandramogan, Chairman, Hatsun Agro Product suggests that the proceeds will be allocated towards expanding the company’s milk procurement and distribution network while also revamping some of its production facilities and marketing efforts.
He added that the investments are part of Hatsun Agro’s plan to sell roughly 2.4 crore product packs per day within the next two years, up from the current 1.84 crore packs.
The Chennai-based firm posted revenues of ₹9,959 crore in FY26 — an increase of 14.5 per cent from the previous fiscal.
Chandramogan suggests that despite a challenging environment for the dairy industry, the company has achieved strong growth in Q1FY27. “We are already at 19 per cent growth. If we can sustain it we will be close to ₹12,000 crore in FY27,” he said.
On the margin front, he added that while rising input costs have compressed margins across the industry, Hatsun has been able to post better margins due to the difference in business models.
“We don’t have any middlemen either on the procurement side or the distribution side. We operate from our own outlets or franchisee outlets so there are no other layers. This along with our strongest branding as the market leader across categories are the reasons our margins are better,” he added.
The company has seen a 13 per cent year-on-year increase in milk procurement prices with Chandramogan attributing weather-related pressures, rising cattle feed costs and higher milk fat prices for the inflation. “We delayed price hikes instead of immediately passing on higher procurement costs. We preferred waiting for the costs to stabilise rather than implementing multiple successive price increases,” he said.
Hatsun also plans to launch its range of protein-rich drinks within the next 1-2 months. The founder added that detailed product information will be announced closer to launch, and did not disclose pricing or product specifications. Apart from protein beverages, Hatsun is also working on new ice cream variants and chocolate products.
Hatsun Agro currently operates around 4,100 HAP Daily outlets as localised micro-distribution networks for its dairy products sold under major brands including Arokya, Arun and Hatsun alongside 220 Ibaco outlets, its premium ice cream brand. It plans to scale its store presence to over 5,000 by the financial year-end.
As for Hatsun’s peers, Dodla saw a revenue growth of 39 per cent at ₹1,198 crore in Q1FY27 while Heritage saw a revenue growth of 43 per cent ₹1,338 crore.
Published on August 4, 2026