Milk Markets & More: Exploring Brands of Hatsun Agro Products

“Q4 probably, the volumes have been comparatively stagnant we can say. But, Q1 of this year, probably volumes are stepping up . But, we are only in the middle of it. And things are improving. Normally, once you are adjusting the price for inflation and increasing the price, market will take about a month to settle down and then start giving a small increase. So, all these corrections have been done in the fourth quarter and we are now set with the first quarter of the year. So, this first quarter probably, slowly we are coming out of all the problems and the inflation is behind us. inflation is not hitting us anymore and inflation can deflate a little over a period of June-July coming months.”
-R G Chandramogan, Chairman

Stock Data

Ticker	HATSUN
Industry	Dairy
Exchange	NSE & BSE

Share Price

Last 1 Month	4.6%
Last 6 Months	0.50%
Last 12 Months	9%

Business Basics

Hatsun Agro Product Limited is one of the leading dairy and dairy products companies in India. Founded in 1986, the company has grown steadily over the years and has become a household name known for its high-quality dairy products. Hatsun Agro Product operates across the entire dairy value chain, from milk procurement to processing and distribution. The company has a robust network of milk procurement centers, which ensures a steady supply of fresh milk from farmers across different regions. The milk is then processed in technologically advanced dairy plants, adhering to strict quality standards. The company offers a wide range of dairy products which include milk, curd, butter, ghee, paneer, ice cream, and various dairy-based beverages. The products are known for their freshness, purity, and superior taste, making them a preferred choice for consumers.

Hatsun Agro Product has developed a strong distribution network, enabling its products to reach customers across India. The company has a significant presence in South India, where it has established a strong market share. It also continues to expand its distribution network to reach new regions and tap into emerging markets. In addition to its focus on quality and distribution, Hatsun Agro Product emphasizes innovation and research and development. The company invests in modern dairy processing technologies to enhance product quality and efficiency. It also continuously introduces new products and variants to cater to changing consumer preferences and market trends. Hatsun Agro Product places a strong emphasis on the welfare of farmers and is actively involved in various initiatives to improve their livelihoods. The company provides technical assistance, training, and support to farmers, helping them adopt best practices in dairy farming and improve milk productivity.

Q4 FY23 Financial Performance

Hatsun Agro Product Limited reported Total Income for Q4 FY23 of ₹1,791.08 Crore up from ₹1,627.31 Crore year on year, a growth of 10%. Consolidated Net Profit of ₹24.98 Crore, down 15.7% from ₹29.64 Crore in the same quarter of the previous year. The Earnings per Share is ₹1.12 for this quarter.

Hatsun’s Brand Portfolio

Hatsun Agro Product Limited, a leading dairy and dairy products company in India, offers a diverse range of brands that cater to different consumer preferences. These brands are known for their quality, taste, and reliability.

Arokya: Arokya is the flagship brand of Hatsun Agro Product and represents its commitment to providing pure and fresh dairy products. Under the Arokya brand, the company offers a wide range of milk and milk-based products, including milk, curd, butter, ghee, paneer, and buttermilk. Arokya products are known for their high quality, nutritional value, and great taste.

Arun: Arun is another well-known brand by Hatsun Agro Product, offering a variety of dairy products. The brand includes products like milk, curd, flavored milk, and ice cream. Arun products are known for their consistent quality, affordability, and wide availability across different regions.

ibaco: ibaco is Hatsun Agro Product’s premium ice cream brand that offers a unique and indulgent ice cream experience. It offers a wide range of flavors and allows customers to customize their ice cream by choosing from a selection of toppings. ibaco is known for its premium quality ingredients, rich flavors, and innovative ice cream concepts.

HAP Daily: HAP Daily is a brand that focuses on delivering fresh and pure milk to households. Under this brand, Hatsun Agro Product ensures that customers receive high-quality milk that is untouched by human hands and undergoes strict quality checks. HAP Daily milk is sourced directly from farmers, ensuring freshness and nutritional value.

Santosa: Santosa is Hatsun Agro Product’s brand for value-added dairy products. It offers a range of products like flavored milk, milkshakes, lassi, and yogurts. Santosa products are known for their delicious flavors, convenience, and affordability, making them a popular choice among consumers.

Analysis of Dairy Industry in India

India is the world’s largest milk producer, accounting for nearly 22% of global milk production. The country has a vast network of dairy farmers, ranging from small-scale to large-scale operations. The cooperative model, spearheaded by organizations such as Amul and Mother Dairy, has been instrumental in organizing farmers and ensuring fair pricing and market access. In the last eight years, specifically between the years 2014–15 and 2021–22, India’s milk production has increased by 51%, reaching 221.06 Mn tonnes. Rajasthan (15.05%), Uttar Pradesh (14.93%), Madhya Pradesh (8.6%), Gujarat (7.56%), and Andhra Pradesh (6.97%) are the top 5 milk-producing states. They are responsible for 53.11% of the nation’s total milk production.

The dairy sector supports more than 8 crore farmers directly and makes up 5% of the national economy. Dairy exports increased by 19.45% from the previous fiscal year’s April-December period of $395 million to the current April-December period of $471 million. The demand for dairy products in India has been steadily increasing due to factors such as population growth, urbanization, rising disposable incomes, and changing dietary patterns. Milk and milk products are an essential part of the Indian diet, with a wide range of products consumed, including milk, ghee (clarified butter), butter, paneer (cottage cheese), yogurt, and ice cream.

The Indian government has implemented various initiatives to support the dairy industry. The National Dairy Development Board (NDDB) and state-level cooperative societies provide technical assistance, financial support, and training to farmers and dairy cooperatives. Government schemes such as the Dairy Entrepreneurship Development Scheme (DEDS) and the National Programme for Dairy Development (NPDD) aim to promote dairy entrepreneurship and improve milk productivity.